Collusion enforcement with private information and private monitoring

Jimmy Chan and Wenzhang Zhang

Journal of Economic Theory, 2015, vol. 157, issue C, 188-211

Abstract: This paper shows that a cartel that observes neither costs, prices, nor sales may still enforce a collusive agreement by tying each firm's continuation profit to the truncated current profits of the other firms. The mechanism applies to both price and quantity competition, and the main features are broadly consistent with common cartel practice identified by Harrington and Skrzypacz [24].

Keywords: Collusion; Oligopoly; Repeated game; Private information; Private monitoring (search for similar items in EconPapers)
JEL-codes: C73 D43 D82 L13 L40 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:157:y:2015:i:c:p:188-211

DOI: 10.1016/j.jet.2015.01.004

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