FSS-DECO seminar: Entry Threats to Cartels: Accommodation or Deterrence?
Speaker: Prof. Bo CHEN, Associate Professor, Department of Economics, Southern Methodist University
Date: 11 Novemeber 2024 (Monday)
Time: 14:00-15:15
Venue: E22-G015
Language: English
Abstract: We study collusion in a repeated oligopoly framework with incumbent firms, a large pool of potential entrants, and (parameterized) entry barriers. Building upon the foundational work of Abreu (1986), we conduct a comprehensive analysis of extremal strongly symmetric equilibria. Notably, we show that contrary to the conventional wisdom, the presence of entry can sometimes strictly enhance quantity collusion among the existing incumbent firms.
