Tacit collusion and market concentration under network effects

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 145
Issue: C
Pages: 266-269

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

In an infinitely repeated Cournot game with trigger strategy punishment, we demonstrate that the relationship between market concentration and collusion sustainability depends on the strength of network externalities. The latter is shown to interact with the number of firms and to affect the profitability of cooperation vs. competition, which delivers the result, challenging conventional wisdom, that lower market concentration can make collusion more stable.

Technical Details

RePEc Handle
repec:eee:ecolet:v:145:y:2016:i:c:p:266-269
Journal Field
General
Author Count
2
Added to Database
2026-01-28