On Communication and Collusion

نویسندگان
چکیده

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This paper analyzes the role of communication between firms in an infinitely repeated Bertrand game in which firms receive an imperfect private signal of a common value i.i.d. demand shock. It is shown that firms can use stochastic, inter-temporal market sharing as a perfect substitute for communication in low demand states. Therefore, partial communication in high demand states is sufficient t...

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ژورنال

عنوان ژورنال: American Economic Review

سال: 2016

ISSN: 0002-8282

DOI: 10.1257/aer.20141469