CFDP 726

Optimal Cartel Equilibria with Imperfect Monitoring

Author(s): 

Publication Date: October 1984

Pages: 28

Abstract: 

There exist optimal symmetric equilibria in the Green-Porter model [5, 8] having an elementary intertemporal structure. Such an equilibrium is described entirely by two subsets of price space and two quantities, the only production levels used by firms in any contingency. The central technique employed in the analysis is the reduction of the repeated game to a family of static games.

Keywords: 

Optimal symmetric cartel equilibria, Cartels, Imperfect monitoring

JEL Classification Codes:  611, 026

See CFP: 656