We explore whether lawful cooperation in buyer groups facilitates collusion in the product market. Buyer groups … constitute credible threats. Hence, in theory, buyer groups facilitate collusion. We run several experimental treatments using …

We explore whether buyer groups, in which firms legally purchase inputs jointly, facilitate collusion in the product … credible threats, hence, in theory buyer groups facilitate collusion. We run several experimental treatments in a three … as a main factor causing collusive product markets. -- buyer groups ; cartels ; collusion ; communication ; experiments …

that resembles traditional tacit collusion, I conduct market experiments with human participants in the same environment …

We analyze firms' ability to sustain collusion in a setting in which horizontally differentiated firms can price … sustainability of collusion. Starting from a low level, an increase in signal precision first facilitates collusion. However, there … is a turning point from which on any further increase renders collusion less sustainable. Our analysis provides important …