The Punishment Mechanism Analysis of Cartel Alliance Mechanism

摘要

Cartel Alliance is made to seek the biggest profit of the whole alliance by limiting quantity firstly, then the total profit is allocated fairly. However the actions that several enterprises of the alliance try to seek their own (not the whole alliance) biggest profit (selecting Cournot competition model) will hurt the benefit of the other members and make the Cartel Alliance unsteady. The paper has introduced the punishment mechanism and used the principle of Nash equilibrium to get the condition that promises Cartel cooperation as Nash equilibrium point. The scope of punishment coefficient is solved.