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The Relationship between Trigger Price and Punishment Period in Green and Porter (1984) Game made Endogenous


  • António Brandão

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Luís Guimarães

    () (Faculdade de Economia, Universidade do Porto)

  • Carlos Seixas

    () (Faculdade de Economia, Universidade do Porto)


Green and Porter (1984) made a huge contribution to Industrial Organization Theory where a trigger price is defined by firms and whenever the price falls below this trigger price, the firms cease to produce at the monopoly level and enter into a punishment period. Our goal with this paper is to define, endogenously in the model, relationships between the trigger price and the punishment period, which were set exogenously in the original paper.

Suggested Citation

  • António Brandão & Luís Guimarães & Carlos Seixas, 2011. "The Relationship between Trigger Price and Punishment Period in Green and Porter (1984) Game made Endogenous," FEP Working Papers 432, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:432

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    References listed on IDEAS

    1. Joseph E. Harrington, 2005. "Optimal Cartel Pricing In The Presence Of An Antitrust Authority," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 145-169, February.
    2. Green, Edward J & Porter, Robert H, 1984. "Noncooperative Collusion under Imperfect Price Information," Econometrica, Econometric Society, vol. 52(1), pages 87-100, January.
    3. Joseph E. Harrington, Jr., 2004. "Cartel Pricing Dynamics in the Presence of an Antitrust Authority," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 651-673, Winter.
    4. Joseph E. Harrington, 2004. "Post-Cartel Pricing During Litigation," Journal of Industrial Economics, Wiley Blackwell, vol. 52(4), pages 517-533, December.
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    More about this item


    Green and Porter (1984); trigger price; punishment period;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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