Cartels in the unidirectional Hotelling model

C-Tier
Journal: Economic Modeling
Year: 2013
Volume: 31
Issue: C
Pages: 690-696

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

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

Abstract

We study the impact of space on perfect collusion sustainability within the unidirectional Hotelling model where the firms are constrained to move to the left. We obtain that when the firm that located to the left of the Hotelling segment has the greater incentive to deviate, the distance between the firms has a negative impact on the capability of the firms to sustain the collusion in equilibrium. On the other hand, when the firm that located to the right has the greater incentive to deviate, greater spatial distance makes the collusion easier to sustain in equilibrium. These results substantially differ from the bidirectional Hotelling model.

Technical Details

RePEc Handle
repec:eee:ecmode:v:31:y:2013:i:c:p:690-696
Journal Field
General
Author Count
1
Added to Database
2026-01-25