Spatially asymmetric firms and the sustainability of a price agreement

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Abstract

We study collusion between price discriminating firms which are asymmetrically located in a linear city. We obtain that higher distance increases the sustainability of the collusive agreement for any degree of spatial asymmetry, and more spatial symmetry between firms increases collusion sustainability whatever is the location of the firms in the space, both assuming grim-trigger and optimal punishment.
Lingua originaleEnglish
pagine (da-a)2414-2421
Numero di pagine8
RivistaEconomics Bulletin
Stato di pubblicazionePubblicato - 2011

Keywords

  • Collusion
  • Spatial asymmetry

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