IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Stable Commitment in an Intertemporal Collusive Trade

  • Romeo Balanquit

    (School of Economics, University of the Philippines Diliman)

Registered author(s):

    This study presents a more general collusive mechanism that is sustainable in an oligopolistic repeated game. In this setup, firms can obtain average payoffs beyond the cooperative profits while at the same time improve consumer welfare through a lower market price offer. In particular, we introduce here the notion of intertemporal collusive trade where each oligopolist, apart from regularly producing the normal cooperative output, is also allowed in a systematic way to earn higher than the rest at some stages of the game. This admits subgame- perfection and is shown under some conditions to be Pareto-superior to the typical cooperative outcome.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/705
    Download Restriction: no

    Paper provided by University of the Philippines School of Economics in its series UP School of Economics Discussion Papers with number 201301.

    as
    in new window

    Length: 34 pages
    Date of creation: Feb 2013
    Publication status: Published as UPSE Discussion Paper No. DP 2013-01, February 2013
    Handle: RePEc:phs:dpaper:201301
    Contact details of provider: Postal:
    Diliman, Quezon City 1101

    Phone: 927-9686
    Web page: http://www.econ.upd.edu.ph/

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Fudenberg, Drew & Levine, David K., 1988. "Open-loop and closed-loop equilibria in dynamic games with many players," Journal of Economic Theory, Elsevier, vol. 44(1), pages 1-18, February.
    2. Farrell, Joseph & Maskin, Eric, 1989. "Renegotiation-proof equilibrium: Reply," Journal of Economic Theory, Elsevier, vol. 49(2), pages 376-378, December.
    3. Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-554, May.
    4. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:phs:dpaper:201301. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reuben T. Campos)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.