Model consistent beliefs with information transmission in oligopoly

Research output: Contribution to journalArticle


A model of market coordination in the presence of private information is developed. One component is a period of talk about output levels. The talk ends when no firm wishes to change its latest announced planned output level, and only if all firms enact their latest announced plans will such talk be repeated in future periods. It is shown how the degree of coordination and apparent collusion achieved is related to the noise in signalling market information.
Original languageEnglish
Pages (from-to)231-249
Number of pages19
JournalEuropean Journal of Political Economy
Issue number2
Publication statusPublished - May 1992

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