Method and apparatus for preventing oligopoly collusion

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C705S014270

Reexamination Certificate

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ABSTRACT:
A method and apparatus for reducing incentives for oligopolistic collusion comprises making managerial compensation dependent on relative profits rather than absolute profits. Since the managers of the firms in the industry are thereby placed in a zero-sum game, their compensation will be totally insensitive to gains in absolute profits resulting from collusion.

REFERENCES:
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