European Business Schools Librarian's Group

IESE Research Papers,
IESE Business School

No D/854: Collusive networks in market-sharing agreements under the presence of an antitrust authority

Flavia Roldan ()
Additional contact information
Flavia Roldan: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: This paper studies how the presence of an antitrust authority affects market-sharing agreements made by firms. These agreements prevent firms from entering each other's market. The set of these agreements defines a collusive network, which is pursued by antitrust authorities. This article shows that while in the absence of the antitrust authority, a network is stable if its alliances are large enough when considering the antitrust authority, and more competitive structures can be sustained through bilateral agreements. Antitrust laws may have a pro-competitive effect, as they give firms in large alliances more incentives to cut their agreements at once.

Keywords: market-sharing; economic networks; antitrust authorit; oligopoly

JEL-codes: D43; K21; L41

34 pages, April 7, 2010

Full text files

DI-0854-E.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Noelia Romero ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:ebg:iesewp:d-0854This page generated on 2024-09-13 22:20:02.