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Collusive Stability with Relative Performance and Network Externalities

Author

Listed:
  • Yi-Shan Lu

    (Department of Logistics Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Chien-Shu Tsai

    (Institute of Marine Affairs and Business Management, National Kaohsiung University of Science and Technology, Kaohsiung 811213, Taiwan)

  • Jen-Yao Lee

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

  • Chung-Yang Lee

    (Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan)

Abstract

In this paper, we aim to investigate the collusive stability in the presence of network externalities among firms with relative performance in the firm’s objective functions. We demonstrate that collusive stability is increasing (decreasing) in the degree of relative performance, product substitutability and network effect when the network effect is sufficiently large (small). A competition agency might need to provide different guidance for anti-competitive regulation in the network industry.

Suggested Citation

  • Yi-Shan Lu & Chien-Shu Tsai & Jen-Yao Lee & Chung-Yang Lee, 2024. "Collusive Stability with Relative Performance and Network Externalities," Games, MDPI, vol. 15(3), pages 1-7, June.
    • Handle: RePEc:gam:jgames:v:15:y:2024:i:3:p:21-:d:1418336
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    References listed on IDEAS

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