collusion and merely consumer rents are transferred, or both welfare and consumer rents are reduced. An all-inclusive cartel …

side and competitive behavior and a partial cartel agreement from another side. The main differences between the scenarios … equilibrium prices were examined. Cases whereby firms prefer to leave the cartel were investigated. Best locations for the setting …

sufficiently impatient, stability is most important, and the optimal cartel equilibrium involves rigid pricing. In contrast, when … firms are sufficiently patient, efficiency is more important, and at high search costs the optimal cartel may increase its … price variance above monopoly levels to induce search and sort consumers to the lower cost firm. Applications to cartel …