Bloch, Francis; Ghosal, Sayantan - In: Review of Economic Design 5 (2000) 2, pp. 129-147
This paper analyzes the formation of cartels of buyers and sellers in a simple model of trade inspired by Rubinstein and Wolinsky's (1990) bargaining model. When cartels are formed only on one side of the market, there is at most one stable cartel size. When cartels are formed sequentially on...