pay reduced fines. This paper connects this potential adverse effect to the number of firms involved in the cartel …

. Within this setting, we study four types of price- xing agreement: (i) a segment-wide cartel in the premium submarket only …, (ii) a segment-wide cartel in the standard submarket only, (iii) two segment-wide cartels, and (iv) an industry …-wide cartel. We present a complete characterization of the collusive pricing equilibrium and examine the corresponding effect on …

. Within this setting, we study four types of price-fixing agreement: (i) a segment-wide cartel in the premium submarket only …, (ii) a segment-wide cartel in the standard submarket only, (iii) two segment-wide cartels, and (iv) an industrywide cartel …-wide cartel prefers to maintain market shares at pre-collusive levels. The impact on consumer and social welfare critically …

In the context of an infinitely repeated capacity-constrained price game, we endogenize the composition of a cartel … when firms are heterogeneous in their capacities. When firms are sufficiently patient, there exists a stable cartel … involving the largest firms. A firm with sufficiently small capacity is not a member of any stable cartel. When a cartel is not …