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- W3122145289 abstract "We study the optimal behaviour of a cartel faced with fringe competition and imperfectly attentive consumers. Intertemporal price dispersion obfuscates consumer price comparison which aids the cartel through two channels: it reduces the effectiveness of free riding by the fringe; and it relaxes the cartel’s internal incentive constraints. Our theory explains the survival of a price-setting cartel in a homogeneous product market, provides a collusive rationale for sales and Edgeworth cycles, and characterises the cartel’s manipulation of its fringe rival through a double cut-off rule." @default.
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- W3122145289 date "2021-02-01" @default.
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- W3122145289 title "Collusion, price dispersion, and fringe competition" @default.
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- W3122145289 doi "https://doi.org/10.1016/j.euroecorev.2020.103640" @default.
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