Cartel stability and the curvature of market demand

Article Abstract:

The effect of the curvature of market demand on cartel stability is analyzed based on Cournot and Bertrand behaviors. It was shown that firms are likely to act as quantity setters to increase cartel stability if demand is sufficiently convex. However, when the number of firms is high, price-setting behavior promotes their ability to collude. When the number of firms favors infinity and regardless of the characteristics of market demand, Cournot behavior was found to be more advantageous than Bertrand's in stabilizing collusion.

Market Research-Data, Research, Market research, Cartels, Descriptive statistics

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The demand for long distance telephone communication: a route-specific analysis of short-haul service

Article Abstract:

A model was formulated to analyze long distance telephone demand based on route-specific short-haul calling minutes. The model, which utilized Florida's 2,813 intra Local Access and Transport Areas (LATA) long-distance routes in 1990, yielded a -0.54 estimate for demand price and a 1.24 estimate for demand income elasticity. The price elasticity of demand rose to -0.71 after the price and the route-specific optional calling plan was taken into consideration.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Telephone communications, exc. radio, Economic aspects, Long distance telephone services, Econometrics, Long-distance telephone service

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