PRICE REGULATION OF PLURALISTIC MARKETS SUBJECT TO PROVIDER COLLUSION
Session Collusion
Session ChairTBA

Presenter(s) Marisa Miraldo, Imperial College Business School
Co-Author(s) None
Keywords Altruism, Collusion, Price Regulation and Yardstick Competition
JEL Codes I18, L33

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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.

 
When & Where
Thu 3 Sep 2009
14:00 - 15:30
Room
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