Collusion and heterogeneity of firms.

We examine the impact of heterogeneous discounting on collusion in dynamic Bertrand competition. We show exactly when collusion can be sustained and how collusion would be organized efficiently with heterogeneous discounting. First, we show that collusion is possible if and only if the average disco...

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Bibliographic Details

Published in:	RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 1; pp. 230 - 250
Main Authors:	Obara, Ichiro, Zincenko, Federico
Format:	Article
Published:	Wiley-Blackwell Spring2017
Subjects:	Game theory Price fixing Discount prices Mathematical models of economic competition Market share Profitability
Online Access:	View this record in EBSCOhost