Cartel Formation in Cournot Competition with Asymmetric Costs: A Partition Function Approach
In this paper, we use a partition function form game to analyze cartel formation among firms in Cournot competition. We assume that a firm obtains a certain cost advantage that allows it to produce goods at a lower unit cost. We show that if the level of the cost advantage is “moderate”, then the fi...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-02-01
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| Series: | Games |
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| Online Access: | https://www.mdpi.com/2073-4336/12/1/14 |