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Stefano Colombo
''Sustainability of collusion with imperfect price discrimination and inelastic demand functions''
( 2009, Vol. 29 No.3 )
We study the impact of product differentiation on collusion sustainability in the case of imperfect price discrimination and inelastic demand functions. We show that differentiation facilitates the sustainability of collusion. Therefore, the indifference result of Gupta and Venkatu (2002) does not hold when imperfect price discrimination is introduced.
Keywords: Imperfect price discrimination Tacit collusion
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General
Manuscript Received : Mar 09 2009 Manuscript Accepted : Jul 17 2009

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