Competition Policy and Cartel Size
International Economic Review, Forthcoming
29 Pages Posted: 26 Nov 2014
Date Written: January 16, 2014
Abstract
This paper examines endogenous cartel formation in the presence of a competition authority. Competition policy is shown to make the most inclusive stable cartels less inclusive. In particular, small firms that might have been cartel members in the absence of a competition authority are no longer members. Regarding the least inclusive stable cartels, competition policy can either decrease or increase their size and, in the latter case, the collusive price can rise.
Suggested Citation: Suggested Citation
Bos, Iwan and Harrington Jr, Joseph E., Competition Policy and Cartel Size (January 16, 2014). International Economic Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2530574
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.