cartel, a group of competing fringe firms, and a welfare maximizing antitrust authority. In existing models of cartel … actors. The cartel is the Stackelberg quantity leader and the fringe firms are in Cournot competition with respect to the …

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 …