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Cartel Stability with Subjective Detection Beliefs

Author

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  • Jeroen Hinloopen

    (Faculty of Economics and Econometrics, University of Amsterdam)

Abstract

The condition is derived for Friedman 's trigger strategy to sustaina collusive market equilibrium as a noncooperative Nash equilibriumgiven subjective beliefs as to the antitrust authority's ability of suc-cesfully dissolving the illegal cartel.

Suggested Citation

  • Jeroen Hinloopen, 2003. "Cartel Stability with Subjective Detection Beliefs," Tinbergen Institute Discussion Papers 03-008/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20030008
    as

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    File URL: https://papers.tinbergen.nl/03008.pdf
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    References listed on IDEAS

    as
    1. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    2. Harrington, Joseph E, Jr, 1987. "Collusion in Multiproduct Oligopoly Games under a Finite Horizon," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 1-14, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cartel stability; trigger strategy; subjective beliefs.;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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