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Econometrica Vol. 52 No. 1 1984

Noncooperative Collusion under Imperfect Price Information

Edward J. Green; Robert H. Porter

California Institute of Technology

Abstract

Recent work in game theory has shown that, in principle, it may be possible for firms in an industry to form a self-policing cartel to maximize their joint profits. This paper examines the nature of cartel self-enforcement in the presence of demand uncertainty. A model of a noncooperatively supported cartel is presented, and the aspects of industry structure which would make such a cartel viable are discussed.

DOI
10.2307/1911462
Volume
52
Issue
1
Pages
87
Sources
bibtex:phds-export.bib crossref openalex

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