Endogenous Cartel Formation with Private Information

Morten Hviid

Canadian Journal of Economics, 1992, vol. 25, issue 4, pages 972-82

Abstract: This paper considers the effect of private information on the incentive to form a cartel that acts both as a strategy-coordination device and as an information-sharing device. Focusing on involuntary information transmission from the cartel to any outside firms, it is shown that private information can cause a disincentive to the formation of a cartel.

Date: 1992

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