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Full-Text Articles in Industrial Organization
Strategic Delegation Improves Cartel Stability, Martijn Han
Strategic Delegation Improves Cartel Stability, Martijn Han
Martijn A. Han
Fershtman and Judd (1987) and Sklivas (1987) show that strategic delegation reduces firm profits in the one-shot Cournot game. Allowing for infinitely repeated interaction, strategic delegation can increase firm profits as it improves cartel stability.