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Endogenous Cartel Formation with Private Information

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  • Morten Hviid

Abstract

This paper considers the effect of private information on the incentive to form a cartel that acts both as a strategy-coordination device and as an information-sharing device. Focusing on involuntary information transmission from the cartel to any outside firms, it is shown that private information can cause a disincentive to the formation of a cartel.

Suggested Citation

  • Morten Hviid, 1992. "Endogenous Cartel Formation with Private Information," Canadian Journal of Economics, Canadian Economics Association, vol. 25(4), pages 972-982, November.
    • Handle: RePEc:cje:issued:v:25:y:1992:i:4:p:972-82
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    Cited by:

    1. Georg Clemens & Holger A. Rau, 2022. "Either with us or against us: experimental evidence on partial cartels," Theory and Decision, Springer, vol. 93(2), pages 237-257, September.
    2. Connor, John M., 1997. "Archer Daniels Midland: Price Fixer To The World," Staff Papers 28653, Purdue University, Department of Agricultural Economics.
    3. Panayiotis Agisilaou, 2013. "Collusion in Industrial Economics and Optimally Designed Leniency Programmes - A Survey," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..

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