This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free … cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly … sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach …

This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free … cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly … sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach …

A usual assumption in the theory of collusion is that cartels are all-inclusive. In contrast, most real-world collusive …) model where firms are heterogeneous in terms of production capacities and individual cartel decisions are endogenized. The …

We conduct an experimental study of cartel behaviour in the presence of an active competition authority that may … antitrust detection. We observe gradual price increases and staggered pricing conforming with theory. Surprisingly, the presence … of potential antitrust prosecution tends to improve the internal functioning of cartels. Cartel stability is …

fines, leniency programs, and reward schemes for whistleblowers on firms' decision to form cartels (cartel deterrence) and …

We experimentally study the effect of information about competitors ́actions on cartel stability and firms ́incentives …

communication. Using a repeated, asymmetric capacity constraint price game, we show that, in line with theory, a partial cartel is … sufficient to increase market prices for all firms. Moreover, we find that prices of cartel insiders and outsiders are not … necessarily on the same level what contradicts common theoretical predictions. This is because communication allows cartel members …

A usual assumption in the theory of collusion is that cartels are all-inclusive. In contrast, most real-world collusive …) model where firms are heterogeneous in terms of production capacities and individual cartel decisions are endogenized. The …

We experimentally study the effect of information about competitors' actions on cartel stability and firms' incentives …