On the Stability of Collusive Price Leadership

Key Points

• This research aims to explore the conditions under which collusive price leadership remains stable within markets.
• Theoretical modeling of collusive behavior among firms.
• Analysis of market dynamics and stability conditions.
• Exploration of price-setting strategies based on market structure.
• Identified key factors that influence the stability of collusive price leadership.
• Found that market structure plays a significant role in sustaining collusion.
• Demonstrated that certain pricing strategies enhance stability under collusion.