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Lizenz
Bitte beziehen Sie sich beim Zitieren dieses Dokumentes immer auf folgende URN: urn:nbn:de:kobv:517-opus-62146 URL: http://opus.kobv.de/ubp/volltexte/2012/6214/ Andree, Kai ; Schwan, Mike
Collusive market sharing with spatial competition
Kurzfassung auf EnglischThis paper develops a spatial model to analyze the stability of a market sharing agreement between two firms. We find that the stability of the cartel depends on the relative market size of each firm. Collusion is not attractive for firms with a small home market, but the incentive for collusion increases when the firm’s home market is getting larger relative to the home market of the competitor. The highest stability of a cartel and additionally the highest social welfare is found when regions are symmetric. Further we can show that a monetary transfer can stabilize the market sharing agreement.
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