ARTÍCULO
TITULO

Imperfect collusion in an asymmetric duopoly

Marc Escrihuela-Villar    
Carlos Gutiérrez-Hita    

Resumen

Using the coefficient of cooperation, we analyse the effect of cost asymmetries oncollusive agreements when firms are able to coordinate on distinct output levelsthan the unrestricted joint profit maximization outcome. In this context, we firstinvestigate the extent to which collusive agreements are feasible. Secondly, wefocus on collusion sustainability in an infinitely repeated game. We show that,regardless of the degree of cost asymmetry, at least some collusion is alwayssustainable. Finally, the degree of collusion is also endogeneised to show thatcooperation has an upper bound determined by the most inefficient firm.

PÁGINAS
pp. 29 - 50
MATERIAS
ECONOMÍA