Abstract
We use a differentiated duopoly a la Hotelling to assess the impact of firms symmetry on the sustainability of a tacit collusive agreement. We obtain that the smaller firm has the greater incentive to deviate and that symmetry helps collusion for any possible differentiation degree.
| Original language | English |
|---|---|
| Pages (from-to) | 338-346 |
| Number of pages | 9 |
| Journal | Economics Bulletin |
| Volume | 29 |
| Publication status | Published - 2009 |
Keywords
- Horizontal differentiation
- Symmetry
- Tacit collusion
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