
doi: 10.2139/ssrn.524523
handle: 10419/117922
The paper studies how does the size of a cartel affect the possibility that its members can sustain a collusive agreement. I obtain that collusion is easier to sustain the larger the cartel is. Then, I explore the implications of this result on the incentives of firms to participate in a cartel. Firms will be more willing to participate because otherwise, they risk that collusion completely collapses, as remaining cartel members are unable to sustain collusion.
L13, Collusion, Partial Cartels, Trigger strategies, Optimal Punishment., ddc:330, L41, Collusion, L11, Kartell, Trigger strategies, Partial cartels, Collusion, Partial cartels, Trigger strategies, Optimal punishment, Optimal punishment, D43, Theorie, jel: jel:D43, jel: jel:L41, jel: jel:L11, jel: jel:L13
L13, Collusion, Partial Cartels, Trigger strategies, Optimal Punishment., ddc:330, L41, Collusion, L11, Kartell, Trigger strategies, Partial cartels, Collusion, Partial cartels, Trigger strategies, Optimal punishment, Optimal punishment, D43, Theorie, jel: jel:D43, jel: jel:L41, jel: jel:L11, jel: jel:L13
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