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PRICE REGULATION OF PLURALISTIC MARKETS SUBJECT TO PROVIDER COLLUSION
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We analyse collusive behaviour when heterogeneous providers are faced two forms of yardstick competition: discriminatory and uniform. Providers are heterogeneous in the degree of altruism. Deviation of interests may arise as a result of de-nationalisation or when private providers enter predominantly public markets.
We assess provider strategies and incentives to collude across different market structures. We find that collusion incentives under a uniform scheme increase in the degree of provider homogeneity whereas in a discriminatory scheme it is no longer dictated by provider symmetry with an industry populated by self-interested providers being more prone to collusion than a mixed market.
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When & Where |
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Thu 3 Sep 2009 |
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14:00 - 15:30 |
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