Business Economics and Public Policy Papers
Document Type
Journal Article
Date of this Version
1-2016
Publication Source
Economics Letters
Volume
138
Start Page
46
Last Page
49
DOI
10.1016/j.econlet.2015.11.020
Abstract
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.
Copyright/Permission Statement
© 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/
Keywords
collusion; firm heterogeneity; minimum recommended price; trade associations
Recommended Citation
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
Embargo Date
11-27-2017
Included in
Business Commons, Economics Commons, Public Affairs, Public Policy and Public Administration Commons
Date Posted: 27 November 2017
This document has been peer reviewed.