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- W3007889410 abstract "I consider a repeated game in which, due to imperfect monitoring, no collusion can be sustained. I add a self-interested monitor who commits to obtain private signals of firms’ actions and sends a public message. The monitor makes an offer specifying the precision of the signals obtained and the amount to be paid in return. First, with a low monitoring cost, collusive equilibria exist. Second, collusive equilibria are monitor-preferred. Third, in monitor-preferred equilibria, firms’ payoffs are decreasing in the discount factor. My model helps explain cartel agreements between self-interested parties and firms in legal industries in the United States and Europe. (JEL C73, D43, D82, L12)" @default.
- W3007889410 created "2020-03-06" @default.
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- W3007889410 date "2020-03-01" @default.
- W3007889410 modified "2023-10-17" @default.
- W3007889410 title "Endogenous Monitoring in a Partnership Game" @default.
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- W3007889410 doi "https://doi.org/10.1257/aer.20161491" @default.
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