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Price Wars and the Stability of Collusion : A Study of the Pre-World War I Bromine Industry

Author: Margaret Levenstein
Publisher: Cambridge, Mass. National Bureau of Economic Research 1993.
Series: Historical Working Paper Series (National Bureau of Economic Research), no. h0050.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Bromine producers colluded to raise prices and profits during most of the period between 1885 and 1914. Collusion was punctuated by price wars in which prices fell sharply. The characteristics of these price wars are compared with those in the Green-Porter and Abreu- Pearce-Stachetti models. Some of the bromine price wars resulted from the imperfect monitoring problems in these models. Those price wars were short  Read more...
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Details

Genre/Form: Electronic book
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Margaret Levenstein
OCLC Number: 1027304051
Notes: September 1993.
Description: 1 online resource.
Details: Mode of access: World Wide Web.
Series Title: Historical Working Paper Series (National Bureau of Economic Research), no. h0050.
Responsibility: Margaret Levenstein.

Abstract:

Bromine producers colluded to raise prices and profits during most of the period between 1885 and 1914. Collusion was punctuated by price wars in which prices fell sharply. The characteristics of these price wars are compared with those in the Green-Porter and Abreu- Pearce-Stachetti models. Some of the bromine price wars resulted from the imperfect monitoring problems in these models. Those price wars were short and mild. More severe price wars were part of a bargaining process, in which firms tried to force a renegotiation to a new collusive equilibrium with a different distribution of rents.

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