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 | English |
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pagine (da-a) | 251-270 |
Numero di pagine | 20 |
Rivista | International Journal of Industrial Organization |
Stato di pubblicazione | Pubblicato - 1986 |
Keywords
- collusion
- sunk costs