http://hdl.handle.net/1765/34762
http://dx.doi.org/10.1016/j.econlet.2011.08.021
scopus: 80053923686
http://dx.doi.org/10.1016/j.econlet.2011.08.021
scopus: 80053923686
Competitive prices as optimal cartel prices
January 2012
Article
volume 114, issue 1 pp 39-42.
Repository contains one file which is not publicly available
In a linear oligopoly model with antitrust enforcement, the optimal cartel price converges to the competitive equilibrium price. The set of sustainable cartel prices does not shrink to the competitive price. We identify necessary conditions for this counter-intuitive convergence result.
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