This paper demonstrates that, under a set of weak assumptions, increased product differentiation will make it more difficult to sustain collusion when it is costly either to coordinate or to maintain collusion. These results contrast with the previous theoretical literature, which shows that, in...

This paper studies an infinitely repeated auction when the stage game involves negative externalities among buyers, that is, a buyer is worse off if another rival wins the good rather than if nobody wins it. It is first shown in the stage game that a cartel must be more inclusive if it wishes to...