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Conventional wisdom is that collusion between firms will be destabilized when they produce closer substitutes of products. We show that, in the presence of strong network externalities, this result no… Click to show full abstract
Conventional wisdom is that collusion between firms will be destabilized when they produce closer substitutes of products. We show that, in the presence of strong network externalities, this result no longer holds, and collusion becomes more sustainable for closer substitutes of products under relatively strong network externalities.
Keywords:
duopoly network;
network;
network externalities;
differentiated duopoly;
collusion differentiated
Journal Title: Economics Letters
Year Published: 2017
Link to full text (if available)
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Journal Title: Economics Letters
Year Published: 2017
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!