In a recent issue of this journal, Basu (2013, Metroeconomica, 64 (2), pp. 293–318) presented some conditions under which replacement cost-based profit rates and historical cost-based profit rates evolve similarly, making, under these conditions, the choice between them irrelevant when...

Using a stylized oligopoly model, we analyze the effect of cartel deterring fines, taking into consideration exemptions granted to cartel members cooperating with the competition authorities. We conclude that the fines can act as a deterrent to breaking collusive agreements, thus stabilizing the...