Year: 2007
Type: report
Abstract: This paper studies farsighted behavior of firms in an oligopolistic market to form a dominant cartel, which has a power to set and control the price in the market.The von Neumann-Morgenstern stable set is adopted as the solution concept.In contrast to the literature, we do not assume a priori the optimal pricing behavior of the cartel; rather, we show that such behavior arises from the result of firms' consideration on the stability.
Authors: Yoshio Kamijo, Noritsugu Nakanishi
Institutions: Waseda University, Kobe University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2108225444