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 …

This paper analyzes the inner workings of cartels. To understand how sanctioning institutions prevent cartel formation … suggests that sanctions are effective in hindering cartel formation not only because they introduce a risk of being fined but …

enforcement policies. First, we observe that risk aversion is negatively correlated with players' proclivity to form a cartel, and … leniency programs in deterring cartels is mostly due to the increased risk of a cartel member being cheated upon when entering … a collusive agreement, while the risk of a cartel being detected by an autonomous investigation of the Authority seems …

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 effectively blocks cartel formation in their respective groups. Second …, members of groups that do form a cartel defect more often thus reducing the average cartel lifetime. Third, the difference …

immunity regarding the public cartel fines, they have no or only restricted protection against private third-party damage … claims. This may stabilize cartels. We run an experiment to study this issue. Firms choose whether to join a cartel, may … claims reduces cartel formation but makes cartels indeed more stable. The negative effect of damages is avoided in a novel …