Vermeulen A.J.; Bos A.M.; Letterie W.A. - Graduate School of Business and Economics (GSBE), … - 2013
We study collusion in an infinitely repeated prisoners' dilemma when firms' discount factor is private information. If tacit collusion is not feasible, firms that are capable of sustaining high prices may still be willing and able to collude explicitly. Firms eager to collude may signal their...