Economics, Econometrics and Finance
4 years ago

Talking Boosts Profits in Industries, Fuels Collusion and Conflict Mediation.

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SSRN Electronic Journal
Explicit vs. Tacit Collusion - The Impact of Communication in Oligopoly Experiments
Miguel A. Fonseca, Hans‐Theo Normann

Paper Summary

The article compares how talking affects pricing in markets with a few companies. Talking helps firms make more money, especially in medium-sized industries. Even after talking is stopped, firms still work together to set prices. Talking helps firms agree on prices and solve problems.

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