Competition policy and cartel size

Iwan Bos and J.E. Harrington

No 27, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: This paper examines endogenous cartel formation in the presence of a competition authority. Competition policy makes the most inclusive stable cartels less inclusive. In particular, small firms that might have been cartel members in the absence of a competition authority are no longer members. Regarding the least inclusive stable cartels, competition policy can either increase or decrease their inclusiveness. Highly inelastic market demand is sufficient for the presence of a competition authority to cause the least inclusive stable cartels to increase in size.

Date: 2013-01-01
New Economics Papers: this item is included in nep-com and nep-ind
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Related works:
Journal Article: COMPETITION POLICY AND CARTEL SIZE (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2013027

DOI: 10.26481/umagsb.2013027

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