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AA00260492-19970002-0033.pdf
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Download
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:1.1 MB
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:Dec 26, 2009 |
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Total downloads since Dec 26, 2009 : 853
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| Title |
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ON THE EFFECT OF TRADE LIBERALIZATION UPON COLLUSION
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TAKAHASHI, Takaaki
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タカハシ, タカアキ
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Graduate Institute of Policy Studies
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Keio Economic Society, Keio University
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1997
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Keio economic studies
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34
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2
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1997
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| Start page |
33
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50
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| Abstract |
I show that collusive behavior may appear when firms expect that barriers to international trade will be removed in the future. For that purpose, applying the spatial competition model a la Hotelling, I construct a two-stage game in which two firms compete by setting their prices for two stages. One property of the game critical to the result is that the second stage game has multiple and asymmetric equilibria.
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