2012-10-11Buch DOI: 10.18452/4429
Strategic Delegation Improves Cartel Stability
Han, Martijn A.
Fershtman and Judd (1987) and Sklivas (1987) show that strategic delegation reduces firm profits in the one-shot Cournot game. Allowing for infinitely repeated interaction, strategic delegation can increase firm profits as it improves cartel stability.
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