This paper generalizes the classical duopoly collusion model by first deriving a new marginal cost curve. It then … have higher incentive to collude. It also distinguishes free collusion from centralized collusion, competition from …

Flexibility - the ability to react swiftly to others' choices - facilitates collusion by reducing gains from defection … before opponents react. Under imperfect monitoring, however, flexibility may also hinder collusion by inducing punishment … collusion. To test this subtle prediction we implement in the laboratory an indefinitely repeated Cournot game with noisy price …