Either with us or against us: Experimental Evidence on Partial Cartels
19 Pages Posted: 29 Mar 2012 Last revised: 22 Mar 2019
Date Written: March 18, 2019
This paper experimentally tests the coordination of partial cartels when payoffs are asymmetric. In a two-stage mechanism with communication we analyze the formation of all-inclusive and partial cartels. Firms reject partial cartels if outside firms profit excessively from cartel formation. Communication increases the number of all-inclusive cartels, but partial cartels remain scarce.
Keywords: Communication, Coordination, Experiment, Partial Cartels.
JEL Classification: C92, D2, L41
Suggested Citation: Suggested Citation