Strategy Revision Opportunities and Collusion
Friederike Mengel and
Ronald Peeters ()
Working Paper Series from Department of Economics, University of Sussex Business School
This paper studies whether and how strategy revision opportunities affect levels of collusion in indefinitely repeated two-player games. Consistent with standard theory, we find that such opportunities do not affect strategy choices, or collusion levels, if the game is of strategic substitutes. In contrast, there is a strong and positive effect for games of strategic complements. Revision opportunities lead to more collusion. We discuss alternative explanations for this result.
Keywords: strategy revision opportunities; cooperation; repeated games; complements vs. substitutes (search for similar items in EconPapers)
JEL-codes: C73 C92 D43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-exp, nep-gth and nep-mic
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Journal Article: Strategy revision opportunities and collusion (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:08716
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