Jump to ContentJump to Main Navigation
Dimensions of Economic Theory and PolicyEssays for Anjan Mukherji$
Users without a subscription are not able to see the full content.

Krishnendu Ghosh Dastidar, Hiranya Mukhopadhyay, and Uday Bhanu Sinha

Print publication date: 2011

Print ISBN-13: 9780198073970

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198073970.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 05 December 2020

International Cartels and Spheres of Influence

International Cartels and Spheres of Influence

(p.252) 15 International Cartels and Spheres of Influence
Dimensions of Economic Theory and Policy

Aditya Bhattacharjea

Oxford University Press

This chapter describes and extends a simple model which shows how cartels consisting of firms based in more than one country may find it profitable to allocate territorial markets amongst their members. Under certain conditions, it is incentive-compatible for firms to divide up national markets, a strategy that prevents them from competing with each other. Examples of actual cartel arrangements are provided, going back over 100 years, to show that the broad features of the model are applicable to the real world. Mixed duopoly is one where there is one public sector firm and one private sector firm. The private firm aims to maximize profits while the public firm aims to maximize total welfare. Numerous studies have explored both price and quantity competition in such a mixed duopoly. Surprisingly, however, few have addressed the nature of equilibrium in price competition in a homogeneous product mixed duopoly.

Keywords:   cartels, territorial markets, mixed duopoly, profits, welfare, price competition, equilibrium, firms

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .