Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/111730
Authors: 
Gomez-Martin, Francisco
Onderstal, Sander
Sonnemans, Joep
Year of Publication: 
2015
Series/Report no.: 
Tinbergen Institute Discussion Paper 15-054/I
Abstract: 
We experimentally study the effect of information about competitors’ actions on cartel stability and firms’ incentives to form cartels in Cournot markets. As in previous experiments, markets become very competitive when individualized information is available and participants cannot communicate. In contrast, when communication is possible, results reverse: Markets become less competitive and cartels become more stable when individualized information is available. We also observe that the extra profits that firms obtain thanks to the possibility to communicate are higher when individualized information is present, suggesting that firms have greater incentives to form cartels in that situation.
Subjects: 
Cournot oligopoly
Cartels
Information
Experiments
JEL: 
C92
L13
L41
Document Type: 
Working Paper

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