@techreport{AndreeSchwan2012, type = {Working Paper}, author = {Andree, Kai and Schwan, Mike}, title = {Collusive market sharing with spatial competition}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-62146}, year = {2012}, abstract = {This paper develops a spatial model to analyze the stability of a market sharing agreement between two firms. We find that the stability of the cartel depends on the relative market size of each firm. Collusion is not attractive for firms with a small home market, but the incentive for collusion increases when the firm's home market is getting larger relative to the home market of the competitor. The highest stability of a cartel and additionally the highest social welfare is found when regions are symmetric. Further we can show that a monetary transfer can stabilize the market sharing agreement.}, language = {en} }