Date of this Version
When firms are heterogeneous, there may not exist a common collusive price that raises all firms’ profits. However it is shown that there always exists a common minimum price that raises all firms’ profits.
© 2016. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
collusion; firm heterogeneity; minimum recommended price; trade associations
Harrington, J. E. (2016). Heterogeneous Firms can Always Collude on a Minimum Price. Economics Letters, 138 46-49. http://dx.doi.org/10.1016/j.econlet.2015.11.020
Date Posted: 27 November 2017
This document has been peer reviewed.