Either with us or against us: Experimental Evidence on Partial Cartels

19 Pages Posted: 29 Mar 2012 Last revised: 22 Mar 2019

See all articles by Georg Clemens

Georg Clemens

Compass Lexecon

Holger Andreas Rau

University of Goettingen (Gottingen)

Date Written: March 18, 2019

Abstract

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

Clemens, Georg and Rau, Holger Andreas, Either with us or against us: Experimental Evidence on Partial Cartels (March 18, 2019). Available at SSRN: https://ssrn.com/abstract=2030331 or http://dx.doi.org/10.2139/ssrn.2030331

Georg Clemens

Compass Lexecon ( email )

23 Square de Meeƻs
Brussels, 1000
Belgium

Holger Andreas Rau (Contact Author)

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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