Why factors facilitating collusion may not predict cartel occurrence — experimental evidence.

Factors facilitating collusion may not successfully predict cartel occurrence: When a factor predicts that collusion (explicit and tacit) becomes easier, firms might be less inclined to set up a cartel simply because tacit coordination already tends to go in hand with supra‐competitive profits. We i...

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Publicado en:Southern Economic Journal Vol. 85; no. 1; pp. 255 - 276
Autores principales: Fonseca, Miguel A., Li, Yan, Normann, Hans‐Theo
Formato: Artículo
Publicado: Wiley-Blackwell Jul2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1002/soej.12278
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        atl: Why factors facilitating collusion may not predict cartel occurrence — experimental evidence.
      aug:
        au:
          Fonseca, Miguel A.
          Li, Yan
          Normann, Hans‐Theo
      su:
        International trade
        Economic competition
        Energy consumption
        Collusion
        Nash equilibrium
      sug:
        subj:
          International trade
          Economic competition
          Energy consumption
          International Trade Financing
          Collusion
          Nash equilibrium
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        C70
        C90
        L42
        C70
        C90
        L42
      ab: Factors facilitating collusion may not successfully predict cartel occurrence: When a factor predicts that collusion (explicit and tacit) becomes easier, firms might be less inclined to set up a cartel simply because tacit coordination already tends to go in hand with supra‐competitive profits. We illustrate this issue with laboratory data. We run n‐firm Cournot experiments with written cheap‐talk communication between players and we compare them to treatments without the possibility to talk. We conduct this comparison for two, four, and six firms. We find that two firms indeed find it easier to collude tacitly but that the number of firms does not significantly affect outcomes with communication. As a result, the payoff gain from communication increases with the number of firms, at a decreasing rate.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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