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Collusive Networks in Market‐Sharing Agreements in the Presence of an Antitrust Authority

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  • Flavia Roldán

Abstract

This paper examines how the presence of an antitrust authority (AA) affects market‐sharing agreements made by firms. These agreements prevent firms from entering each other’s markets. The set of agreements defines a collusive network, which is pursued by antitrust authorities. This paper shows that in the absence of an AA, a network is stable if its alliances are large enough, and in the presence of an AA, more competitive structures can be sustained through bilateral agreements. Antitrust laws may have a procompetitive effect, as they give firms in large alliances more incentives to cut their agreements at once.

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  • Flavia Roldán, 2012. "Collusive Networks in Market‐Sharing Agreements in the Presence of an Antitrust Authority," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(4), pages 965-987, December.
    • Handle: RePEc:bla:jemstr:v:21:y:2012:i:4:p:965-987
    DOI: j.1530-9134.2012.00352.x
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    Cited by:

    1. Carlos Ponce & Flavia Roldán, 2016. "Antitrust policies in network environments," Documentos de Investigación 112, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.

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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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