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.
| Lingua originale | Inglese |
|---|---|
| pagine (da-a) | 338-346 |
| Numero di pagine | 9 |
| Rivista | Economics Bulletin |
| Volume | 29 |
| Stato di pubblicazione | Pubblicato - 2009 |
Keywords
- Horizontal differentiation
- Symmetry
- Tacit collusion
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