We consider a dynamic competition game among three players, where each player can vary the extent of his competition on a per-rival basis. We call such competition targeted. We show that if the players are myopic, the weaker players eventually lose the game to their strongest rival. If instead...

An experiment is conducted were subjects interact repeatedly to examine the effect of a particular leniency program on cartel formation, cartel stability and cartel recidivism. The program leads to lower prices for three reasons. First, non-cooperators are more persistent in their behavior which...