Competitive prices as optimal cartel prices

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 114
Issue: 1
Pages: 39-42

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a linear oligopoly model with antitrust enforcement, the optimal cartel price converges to the competitive equilibrium price. The set of sustainable cartel prices does not shrink to the competitive price. We identify necessary conditions for this counter-intuitive convergence result.

Technical Details

RePEc Handle
repec:eee:ecolet:v:114:y:2012:i:1:p:39-42
Journal Field
General
Author Count
3
Added to Database
2026-01-26