Heterogeneous firms can always collude on a minimum price

Joseph E. Harrington

Economics Letters, 2016, vol. 138, issue C, 46-49

Abstract: When firms are heterogeneous, there may not exist a common collusive price that raises all firms’ profits. However it is shown that there always exists a common minimum price that raises all firms’ profits.

Keywords: Collusion; Firm heterogeneity; Minimum recommended price; Trade associations (search for similar items in EconPapers)
JEL-codes: L1 L4 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:138:y:2016:i:c:p:46-49

DOI: 10.1016/j.econlet.2015.11.020

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