Mergers and Partial Tacit Collusion

Abstract

This paper studies whether mergers may lead to partial tacit collusion, thereby having the potential to induce simultaneous coordinated and non-coordinated effects. We use a Bertrand-Edgeworth model with heterogeneous discount factors to derive conditions for profitable and stable collusion and provide a numerical example. Mergers that change the market structure in a way such that maverick firms are eliminated or colluding firms reach a critical share in total capacity can lead to partial collusion.

Zitieren

@article{grueb2021, title={Mergers and Partial Tacit Collusion}, author={Gr{\"u}b, Jens}, year={2019}, }

Beteiligte Personen

• M.Sc. Jens Grüb