To make sense of mixed empirical evidence on the pricing rigidity of cartels, this paper studies how colluding firms price their goods in a model where firms have private marginal costs and sell to consumers with search costs. In this model, firms repeatedly interact in selling a homogeneous...

Federal agencies must conduct regulatory analysis on potential rules to make sure that they work for the benefit of the public. When doing this, agencies conduct cost-benefit analysis (CBA) on a rule individually. This ‘piecemeal’ approach holds other rules in the regulatory environment...