Brandão, António; Pinho, Joana; Vasconcelos, Hélder - Faculdade de Economia, Universidade do Porto - 2013
We characterize collusion sustainability in markets where demand growth may trigger the entry of a new firm whose efficiency may be different from the efficiency of the incumbents. We find that the profit-sharing rule that firms adopt to divide the cartel profit after entry is a key determinant...