| ID | 199623 |
| Title Proper | Delegation and strategic collusion under antitrust policies |
| Other Title Information | an experiment |
| Language | ENG |
| Author | Kim, Jeong Yeol |
| Summary / Abstract (Note) | When firm owners delegate decision-making to managers, such as corporate executives who operate firms directly, a firm's behavior can vary depending on how the owner determines the incentives of the managers. This study employs a lab experiment to investigate the impact of delegation on collusive behavior of firms in a situation where antitrust policies exist. The experiment highlights the following two key findings: (i) Firms form cartels strategically, alternating their collusive and competitive output to evade antitrust regulations, rather than consistently producing collusive output to maximize joint profits; and (ii) Delegation does not necessarily increase the overall number of cartels, but it may change how cartels are formed. |
| `In' analytical Note | China Economic Review Vol. 90, Apr 2025: p.102361 |
| Journal Source | China Economic Review 2025-03 90, 90 |
| Key Words | Delegation ; Antitrust ; Cartel ; Collusion |