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 …

the participant imposing the sanction and the individual receiving the sanction. Rewards represent a zero sum transfer … from participants giving to those receiving rewards. We contrast reward and sanction institutions in regard to their impact …