Market Segmentation, Market Integration and Tacit Collusion
This paper shows that moving from market segmentation to market integration (i.e. firms can no longer discriminate among markets) has anti-competitive effects in a repeated game setting in which a simple trigger strategy is the enforcement strategy. In particular, we show that two countries can never both experience pro-competitive gains and that two similar countries always both experience anti-competitive effects from market integration.
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|Date of creation:||1998|
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