On the stability of collusive price leadershipTipo de material: TextoSeries The Canadian Journal of Economics ; n. 1Detalles de publicación: Canadian Economics Association; Toronto; February 1983Descripción: pp. 17-25 ilTema(s): Clasificación CDD:
- H 26710 n. 1, 1983
The gains from cartel formation and the stability of a dominant cartel are investigated for the price-leadership model. We show that there is a general interest in the establishment of a cartel with the competitive fringe reaping a disproportionate share of the benefits. In contrast to results involving a continuum of firms, with a finite number of firms (each with the same cost curve) there is always a stable dominant cartel.