Collusion with limited product comparability

A-Tier
Journal: RAND Journal of Economics
Year: 2018
Volume: 49
Issue: 3
Pages: 481-503

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

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

Abstract

We examine the effect of limited product comparability on the viability of collusion. Firms choose messages to influence consumer product comparison. The cartel hinders transparency on the equilibrium path and seeks it for optimal punishment. Five conditions are each sufficient to ensure obfuscation aids collusion: if firms can mix over messages or commit to messages, if messages are informative, or if an individual firm or the cartel can control comparability. We also analyze the impact of message differentiation and complexity for optimal messages, and identify a key role for the convexity or concavity of comparison probabilities in these features.

Technical Details

RePEc Handle
repec:bla:randje:v:49:y:2018:i:3:p:481-503
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25