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- W3122566784 abstract "We test whether a nonbinding price ceiling may serve as a focal point for tacit collusion, using data from the credit card market during the 1980’s. Our empirical model can distinguish instances when firms match a binding ceiling from instances when firms tacitly collude at a nonbinding ceiling. The results suggest that tacit collusion at nonbinding state-level ceilings was prevalent during the early 1980’s, but that national integration of the market reduced the sustainability of tacit collusion by the end of the decade. The results highlight a perverse effect of price regulation." @default.
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- W3122566784 date "2003-11-01" @default.
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- W3122566784 title "Price Ceilings as Focal Points for Tacit Collusion: Evidence from Credit Cards" @default.
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- W3122566784 doi "https://doi.org/10.1257/000282803322655509" @default.
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