Abstract
This paper considers an infinitely repeated competition between manufacturer-retailer supply chains. In every period, retailers privately observe the demand and manufacturers pay retailers ‘information rents’. I study collusive equilibria between the supply chains that may or may not involve the retailers. I find that including forward-looking retailers in the collusive scheme may facilitate or hinder collusion, depending on the likelihood of a high demand and the gap between a high and a low demand. Moreover, collusion on monopoly profits can be easier or more difficult to implement than collusion on upstream profits.
Original language | English |
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Pages (from-to) | 1195-1226 |
Number of pages | 32 |
Journal | Journal of Industrial Economics |
Volume | 72 |
Issue number | 3 |
DOIs | |
State | Published - Sep 2024 |