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Tacit Collusion

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Collusion What is Harmful & What is not? By Sameh Al-Anani
What is (Really) meant by Collusion? ,[object Object],[object Object]
How does it happen? ,[object Object],[object Object]
Types of Collusion ,[object Object],[object Object],[object Object],[object Object]
How does it work? ,[object Object],[object Object]
Example (in the case of duopoly ) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Payoff Matrix of the Game Each earns 15 profit Firm A: 80 profit Firm B: 0 profit Firm A aggressive advertising Firm A: 0 profit Firm B: 80 profit Each earns 50 profit Firm A normal advertising Firm B aggressive advertising Firm B normal advertising
Conclusion ,[object Object],[object Object],[object Object],[object Object]
Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Tacit Collusion

  • 1. Collusion What is Harmful & What is not? By Sameh Al-Anani
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Payoff Matrix of the Game Each earns 15 profit Firm A: 80 profit Firm B: 0 profit Firm A aggressive advertising Firm A: 0 profit Firm B: 80 profit Each earns 50 profit Firm A normal advertising Firm B aggressive advertising Firm B normal advertising
  • 8.
  • 9.