Arbeitspapier
On Globally Optimal Punishments in the Repeated Cournot Game
We challenge the global optimality of one-shot punishments in infinitely repeated games with discounting. Specifically, we show that the stick-and-carrot punishment à la Abreu (1986) may not be globally optimal. We prove our result by investigating tacit collusion in the infinite repetition of a linear Cournot game. We illustrate the existence of the stick-and-carrot globally optimal punishment for large cartels, and fully characterise it. Then, we show that for mall cartels, global optimality may be reached only with two-period punishments.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 1091
- Classification
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Wirtschaft
Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
Oligopoly and Other Imperfect Markets
- Event
-
Geistige Schöpfung
- (who)
-
Delbono, Flavio
Lambertini, Luca
- Event
-
Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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2016
- DOI
-
doi:10.6092/unibo/amsacta/5483
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Delbono, Flavio
- Lambertini, Luca
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2016
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Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
Extended Games Played by Managerial Firms
Time Consistency in Games of Timing
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