EconPapers    
Economics at your fingertips  
 

Price Wars and the Stability of Collusion: A Study of the Pre-World War I Bromine Industry

Margaret Levenstein

Journal of Industrial Economics, 1997, vol. 45, issue 2, 117-37

Abstract: Between 1885 and 1914, U.S. bromine producers colluded to raise prices and profits. This collusion was disrupted by price wars. Bromine price wars are compared with the Green-Porter (1984) and Abreu-Pearce-Stacchetti (1986) models. Some price wars resulted from the imperfect monitoring problems which motivate these models. Several empirical implications of the Abreu-Pearce-Stacchetti model are borne out but the bromine industry's price wars were generally milder than contemplated by their model. More severe price wars were part of a bargaining process in which firms tried to force renegotiation to a new collusive equilibrium with a different distribution of rents. Copyright 1997 by Blackwell Publishing Ltd

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=1997&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Price Wars and the Stability of Collusion: A Study of the Pre-World War I Bromine Industry (1993) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:45:y:1997:i:2:p:117-37

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-09-18
Handle: RePEc:bla:jindec:v:45:y:1997:i:2:p:117-37