In this paper we claim that distance alone is a poor proxy for international transport costs in empirical studies. We … transport technology, which lowers their marginal costs and as a consequence, equilibrium transport prices. Transport costs thus … effect of the investment decision on transport costs biases empirical results. The empirical estimations rely on newly …

across markets to sustain their most collusive outcome. We find that, when goods are very close substitutes and trade costs … of product substitutability, trade costs are sufficiently low. We also study the dependence of multimarket collusion on …