Cartel harm with input substitutability: theory and an application
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| Publication date | 2010 |
| Journal | Aenorm |
| Volume | Issue number | 18 | 67 |
| Pages (from-to) | 9-13 |
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| Abstract | This article examines the substitution effects of cartels. After a group of input producers has fixed a high price, its customers may change the relative demand of their inputs. To model this, the elasticity of substitution is used. Surprisingly, it is found that both with close substitutes and close complements, forming a cartel may not be profitable. |
| Document type | Article |
| Language | English |
| Published at | http://www.aenorm.eu/editions/?edt=10&art=70 |
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