NONCOOPERATIVE COLLUSION UNDER IMPERFECT PRICE INFORMATION

@article{Green1984NONCOOPERATIVECU,
  title={NONCOOPERATIVE COLLUSION UNDER IMPERFECT PRICE INFORMATION},
  author={Edward J. Green and Robert H. Porter},
  journal={Econometrica},
  year={1984},
  volume={52},
  pages={87-100}
}
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. LONG-STANDING QUESTIONS about how widespread is the occurrence of collusion in… 

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