We show that large retailers, competing with smaller stores that carry a narrower range, can exercise market power by pricing below cost some of the products also offered by the smaller rivals, in order to discriminate multistop shoppers from one-stop shoppers. Loss leading thus appears as an...

Leniency programs contribute to destabilizing collusion but can also be abused and generate perverse effects. This paper develops a simple model capturing this trade-off, which we use to relate the optimal leniency policy (the carrot) to the effectiveness of investigations (the stick). We show...

Purpose: The purpose of this paper is to explore the influence of subsidiary autonomy on subsidiary performance under uncertainty. Based on previous studies, the authors classify subsidiary autonomy into two categories, namely, strategic autonomy and operational autonomy, and investigate the...