Strausz, Roland; Sasaki, Dan - Volkswirtschaftliche Fakultät, … - 2008
We develop a model to show that cartels that produce goods with lower durability are easier to sustain implicitly. This … observation gen- erates the following results: 1) implicit cartels have an incentive to pro- duce goods with an inefficiently low … level of durability; 2) a monopoly or explicit cartel is welfare superior to an implicit cartel; 3) welfare is non …