Economics, Econometrics and Finance
8 years ago

Strong network effects make collusion sustainable for similar products in duopoly

1 view
Economics Letters
Collusion in a differentiated duopoly with network externalities
Ruichao Song, Leonard F. S. Wang

Paper Summary

Collusion between companies is usually thought to break down when they sell similar products. However, when strong network effects are involved, collusion can actually be more stable when products are very similar.

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