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A note on information of firms and collusion

Author

Listed:
  • Stefano Colombo

    (Catholic University of Milan)

Abstract

We study the effect of more information of firms about consumers' preferences on collusion sustainability within a differentiated Hotelling duopoly. We show that the increase of information may increase or decrease collusion sustainability, depending on the type of information involved (shared information or unshared information), on the characteristics of the information distribution, and on the product differentiation degree.

Suggested Citation

  • Stefano Colombo, 2010. "A note on information of firms and collusion," Economics Bulletin, AccessEcon, vol. 30(2), pages 1603-1608.
    • Handle: RePEc:ebl:ecbull:eb-10-00301
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I2-P147.pdf
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    Cited by:

    1. Helfrich, Magdalena & Herweg, Fabian, 2016. "Fighting collusion by permitting price discrimination," Economics Letters, Elsevier, vol. 145(C), pages 148-151.

    More about this item

    Keywords

    Tacit collusion; Information; Horizontal differentiation; Hotelling;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies

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