Information Sharing in Oligopoly: Sharing Groups and Core-Periphery Architectures

The trade-off between the costs and benefits of disclosing a firm’s private information has been object vast literature. absence incentives to share on common market demand prior competition advocated interpret sharing as evidence collusion. Recent contributions have looked at bilateral sharing, showing that is consistent with pairwise stability, This paper studies networked pattern demand, focusing role heterogeneous (firms’ signals different variances). We show while stability predicts i.i.d. are always shared in groups symmetric internal structure (both without side-payment linking costs), asymmetric core-periphery architectures, which “core” firms more valuable than periphery firms.