Collusion in a Bertrand duopoly model with decreasing returns and product differentiation
We study cartel stability in a differentiated price-setting duopoly with returns to scale. We show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. In addition we demonstrate that for a given factor of discount,...
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| Format: | Article |
| Language: | English |
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Universidad de Chile
2016-04-01
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| Series: | Estudios de Economía |
| Online Access: | https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40235 |