About: Collusion through price ceilings? In search of a focal-point effect

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rdf:type	skos:Concept http://linked.opendata.cz/ontology/domain/vavai/Vysledek
Description	The theory of competitive markets predicts that the effect of a price ceiling on the level of prices is either negative (in case the ceiling is binding) or zero (in case the ceiling is at or above the competitive price). Industrial economists such as Scherer and Ross (1990), however, have argued that price ceilings can weaken competition as they may serve as collusive focal points for pricing decisions (Schelling, 1960). To see this, note that the Folk Theorem (see for example Tirole, 1988) predicts that infinitely many prices can occur as outcomes of collusive equilibria in infinitely repeated games if the discount factor is sufficiently high. This suggests a coordination problem when firms attempt to collude. Here, a price ceiling may function as a focal point on which firms coordinate. Thus, price ceilings could facilitate tacit collusion and lead to higher prices. The theory of competitive markets predicts that the effect of a price ceiling on the level of prices is either negative (in case the ceiling is binding) or zero (in case the ceiling is at or above the competitive price). Industrial economists such as Scherer and Ross (1990), however, have argued that price ceilings can weaken competition as they may serve as collusive focal points for pricing decisions (Schelling, 1960). To see this, note that the Folk Theorem (see for example Tirole, 1988) predicts that infinitely many prices can occur as outcomes of collusive equilibria in infinitely repeated games if the discount factor is sufficiently high. This suggests a coordination problem when firms attempt to collude. Here, a price ceiling may function as a focal point on which firms coordinate. Thus, price ceilings could facilitate tacit collusion and lead to higher prices. (en)
Title	Collusion through price ceilings? In search of a focal-point effect Collusion through price ceilings? In search of a focal-point effect (en)
skos:prefLabel	Collusion through price ceilings? In search of a focal-point effect Collusion through price ceilings? In search of a focal-point effect (en)
skos:notation	RIV/67985998:_____/11:00373121!RIV12-AV0-67985998
http://linked.open...avai/predkladatel	Národohospodářský ústav AV ČR, v.v.i.
http://linked.open...avai/riv/aktivita	Z
http://linked.open...avai/riv/aktivity	Z(AV0Z70850503)
http://linked.open...iv/cisloPeriodika	3
http://linked.open...vai/riv/dodaniDat	2012
http://linked.open...aciTvurceVysledku	Engelmann, Dirk
http://linked.open.../riv/druhVysledku	J - Článek v odborném periodiku
http://linked.open...iv/duvernostUdaju	S - Úplné a pravdivé údaje nepodléhající ochraně podle zvláštních právních předpisů
http://linked.open...titaPredkladatele	Národohospodářský ústav AV ČR, v. v. i.
http://linked.open...dnocenehoVysledku	190840
http://linked.open...ai/riv/idVysledku	RIV/67985998:_____/11:00373121
http://linked.open...riv/jazykVysledku	eng - angličtina
http://linked.open.../riv/klicovaSlova	collusion; competition policy; experimental economics (en)
http://linked.open.../riv/klicoveSlovo	collusion competition policy experimental economics
http://linked.open...odStatuVydavatele	NL - Nizozemsko
http://linked.open...ontrolniKodProRIV	[4AC995BE96ED]
http://linked.open...i/riv/nazevZdroje	Journal of Economic Behavior & Organization
http://linked.open...in/vavai/riv/obor	AH
http://linked.open...ichTvurcuVysledku	1 (xsd:int)
http://linked.open...cetTvurcuVysledku	2 (xsd:int)
http://linked.open...UplatneniVysledku	2011
http://linked.open...v/svazekPeriodika	79
http://linked.open...iv/tvurceVysledku	Engelmann, Dirk Müller, W.
http://linked.open...ain/vavai/riv/wos	000294029400011
http://linked.open...n/vavai/riv/zamer	Economic Aspects of EU and EMU Entry
issn	0167-2681
number of pages	12 (xsd:int)
http://bibframe.org/vocab/doi	10.1016/j.jebo.2011.02.008
is http://linked.open...avai/riv/vysledek of	Collusion through price ceilings? In search of a focal-point effect Collusion through price ceilings? In search of a focal-point effect

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