Leadership Cartels in Industries with Differentiated Products.

Abstract

This article analyses cartels that act as a Stackelberg leader with respect to a competitive fringe in industries supplying differentiated products. The main objectives are to investigate how cartel stability changes with the degree of differentiation and the cartel size, to predict endogenous cartels and to carry out a welfare analysis. Both repeated and static games are considered as well as industries competing in quantities and prices.CARTELS ; GAMES ; COMPETITION ; SIZE OF INDUSTRY