This paper examines endogenous cartel formation in the presence of a competition authority. Competition policy is shown to make the most inclusive stable cartels less inclusive. In particular, small firms that might have been cartel members in the absence of a competition authority are no longer...

Towards understanding what makes a cartel successful, this chapter examines a variety of collusive practices with an eye to how they vary in their efficacy in establishing and sustaining supracompetitive prices and in the legal risk they create for firms. Four conditions for cartel success are...