Collusion in experimental Bertrand duopolies with convex costs: The role of cost asymmetry

B-Tier
Journal: International Journal of Industrial Organization
Year: 2012
Volume: 30
Issue: 6
Pages: 508-517

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Theory, experimental studies, as well as antitrust guidelines suggest that symmetry among firms is conducive to more collusive outcomes. We test this perception in a series of experimental repeated Bertrand duopolies where firms have convex costs. We implement symmetric as well as asymmetric markets that vary in their degree of cost asymmetry among firms. We find no evidence of symmetric markets being more prone to collusion than asymmetric markets. If anything, asymmetry helps firms coordinate on higher prices and achieve higher profits.

Technical Details

RePEc Handle
repec:eee:indorg:v:30:y:2012:i:6:p:508-517
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24