I analyze secret bilateral forward contracting in a Cournot oligopoly. A secret bilateral forward contract affects the production quantities of the firms which are party to the contract but not of the outsiders. On the one hand, forward contracts facilitate for heterogeneous firms to rationalize...

I show that permitting horizontal sustainability agreements can induce firms to liquidate their polluting production facilities, substituting marginal costs for fixed costs, in situations where they lack unilateral incentives to do so

We characterize the effect of overlapping ownership (OO) on investments in product innovation. We analyze two opposing forces: (1) OO induces firms to internalize that success on their own behalf erodes the rivals’ business, reducing investments; (2) OO softens competition in the product...

Intermittent power sources enable firms to reduce costs by horizontally subcontracting generation. Dispatchable units serve as a strategic device, even when never used, since their availability credibly limits the price paid for subcontracting. Security of supply measures motivated by too low...