We examine the economics literature on tacit collusion in oligopoly markets and take steps toward clarifying the relation between economists’ analysis of tacit collusion and those in the legal literature. We provide an example to motivate the idea that collusive profits can be achieved via tacit coordination in an environment where there is a unique, salient way for colluders to maximize and di...

Taking insights from the extant literatures in cross-cultural management and organizational knowledge management, this paper explores the role of cultural dimensions of individualism and collectivism in transfer of tacit knowledge between foreign agents. Tacit knowledge transfer is positively influenced by four key factors: absorptive capacity of target unit, source unit’s motivational disposit...

The rate of new drug approvals in the US has remained essentially constant since 1950, while the costs of drug development have soared. Many commentators question the sustainability of the current model of drug development, in which large pharmaceutical companies incur markedly escalating costs to deliver the same number of products to market. This Issue Brief summarizes the problem, describes ...

The aim of this paper is to show that conventions are sources of tacit agreements. Such agreements are tacit in the sense that they are implicated by what the agents do (or forbear to do) though without that any communication between them be necessary. Conventions are sources of tacit agreements under two substantial assumptions: (1) that there is a salient interpretation, in some contexts, of ...