Abstract
The paper models competition among firms which operate at excess capacity as a non-cooperative bargaining game. It is shown that, provided sunk costs are sufficiently high, collusion among firms will ensue. This result has been employed to provide a non traditional interpretation of both price and non-price competition in the European car market in recent years
| Lingua originale | Inglese |
|---|---|
| pagine (da-a) | 251-270 |
| Numero di pagine | 20 |
| Rivista | International Journal of Industrial Organization |
| Stato di pubblicazione | Pubblicato - 1986 |
Keywords
- collusion
- sunk costs