Assuming constant marginal cost, it is shown that a switch from specific to ad valorem taxation has no effect on the critical discount factor required to sustain collusion. This result is shown to hold for Cournot oligopoly as well as for Bertrand oligopoly when collusion is sustained with...

In Eleanor Fox and Mor Bakhoum's new book titled Making Markets Work for Africa: Markets, Developments, and Competition Law in Sub-Saharan Africa (Oxford University Press, 2019), the authors offer a comprehensive look at the role that competition law can play in promoting economic development as...

Firms tend to compete more aggressively in financial distress; the intensified competition in turn reduces profit margins for everyone, pushing some further into distress. To study such feedback and contagion effects, we incorporate dynamic strategic competition into an industry equilibrium with...

Using the coefficient of cooperation, we analyse the effect of cost asymmetries on collusive agreements when firms are able to coordinate on distinct output levels than the unrestricted joint profit maximization outcome. In this context, we first investigate the extent to which collusive...

This is the supplemental material to the paper titled "Feedback and Contagion through Distressed Competition." It includes additional empirical, theoretical, and quantitative results. It also includes illustration for the numerical algorithm for our model solution

Using the coefficient of cooperation, we analyse the effect of cost asymmetries on collusive agreements when firms are able to coordinate on distinct output levels than the unrestricted joint profit maximization outcome. In this context, we first investigate the extent to which collusive...