On the profitability of collusion in location games

Zur Profitabilität von Kollusion in Standortspielen

Steffen Huck, Vicki Knoblauch () and Wieland Müller

No FS IV 02-22, Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center

Abstract: In this note we take a first step towards the analysis of collusion in markets with spatial competition, focusing on the case of pure location choices. We find that collusion can only be profitable if a coalition contains more than half of all players. This result holds for location games played in k-dimensional Euclidean space as long as consumers are distributed via atomless density functions. For competition on the unit interval, unit circle, and unit square we also derive sufficient conditions for collusion to be profitable.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/51109/1/363084215.pdf (application/pdf)

Related works:
Journal Article: On the profitability of collusion in location games (2003)
Working Paper: On the profitability of collusion in location games (2003)
Working Paper: On the profitability of collusion in location games (2000)
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:zbw:wzbmpg:fsiv0222

Access Statistics for this paper

More papers in Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().