Competitive Prices as Optimal Cartel Prices

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

In a linear oligopoly model with antitrust enforcement, the optimal cartel price converges to the competitive equilibrium price. The set of sustainable cartel prices does not shrink to the competitive price. We identify necessary conditions for this counter-intuitive convergence result. © 2011 Elsevier B.V.
Original languageEnglish
Pages (from-to)39-42
JournalEconomics Letters
Volume114
Issue number1
DOIs
Publication statusPublished - 2012

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