Class 4: Reciprocity and Collusion
Textbook reading: Kreps, Chapter 3, “Reciprocity and Collusion.” Read all of it; Section 3.1 has the model, Section 3.2 applies it to industries, and Section 3.3 shows it is about much more than cartels.
Textbook reading: Kreps, Chapter 3, “Reciprocity and Collusion.” Read all of it; Section 3.1 has the model, Section 3.2 applies it to industries, and Section 3.3 shows it is about much more than cartels.