Does Knowledge About the Presence of a Maverick in the Market Influence the Price Level?.

Format:

Video

Series:

Academic Video Online

Language:

English

Physical Description:

1 online resource (12 minutes)

Place of Publication:

[Place of publication not identified] : Latest Thinking, [date of publication not identified]

System Details:

video file

Summary:

The experiment presented in this video constructs a heterogeneous duopoly of firms - on the one hand a firm with an internal structure leading to low prices, and on the other hand a firm acting collusively in price-setting. MICHAEL KURSCHILGEN explains that transparency about the competitor's internal structure hampers tacit collusion: If the collusive firm is aware of the other firm's internal structure, the firms will compete on prices and prices will decline; otherwise, both firms will collude on price-setting and prices will rise.

Notes:

Title from resource description page (viewed August 24, 2020).