Optimal collusion under imperfect monitoring in multimarket contact

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 76
Issue: 2
Pages: 636-647

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

We investigate optimal collusion in repeated multimarket contact under imperfect public monitoring, where two firms operate in m markets and in each market, each firmʼs decision and public signals are binary. We show that in an optimal pure strategy strongly symmetric perfect public equilibrium, the size of efficiency loss is equal to that in the market with the most tempting deviation under single-market contact. Furthermore, we show a sufficient condition under which the symmetric equilibrium is optimal for joint payoff maximization among any perfect public equilibrium.

Technical Details

RePEc Handle
repec:eee:gamebe:v:76:y:2012:i:2:p:636-647
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25