Schröder, Philipp J. H. - 2004
understanding about staying out of each other?s markets. The paper distinguishes among different types of trade costs: ad valorem …, unit, fixed. It is shown that for a sufficient reduction of ad valorem trade costs, a cartel supported by collusion on … unit (fixed) trade costs a price setting cartel is strengthened (unaffected), while a quantity setting one is weakened. …