EconStor >
Eberhard Karls Universität Tübingen >
Wirtschaftswissenschaftliche Fakultät, Universität Tübingen >
Tübinger Diskussionsbeiträge, Universität Tübingen >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/47553
  
Title:Does cooperation in manufactoring foster tacit collusion PDF Logo
Authors:Neubecker, Leslie
Issue Date:2003
Series/Report no.:Tübinger Diskussionsbeiträge 261
Abstract:This paper analyzes the effect of cooperation in manufacturing on firms' inclination to collude in the market. Compared to non-cooperation in manufacturing, coordination of the investments in production yields a higher competitive profit. If firms intensify cooperation and produce in a joint plant, this profit is still higher due to lower investment costs. Since firms return to competition after a defection from the collusive agreement, a high competitive profit implies a weak punishment. Collusion is thus more difficult, the closer firms cooperate in manufacturing. Moreover, given competition or collusion in the market, joint production yields the highest profit and welfare.
Subjects:): Manufacturing
Cooperative production
Dynamic competition
Collusion
JEL:C73
L13
L23
L41
Persistent Identifier of the first edition:urn:nbn:de:bsz:21-opus-18717
Document Type:Working Paper
Appears in Collections:Tübinger Diskussionsbeiträge, Universität Tübingen

Files in This Item:
File Description SizeFormat
574888950.pdf206.62 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/47553

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.