which collusion (or merger to monopoly), by restricting trade relative to duopolistic competition, is beneficial for society …. We show that a social planner would further restrict trade than the perfect cartel would, and how the socially optimal …

That collusion among sellers hurts buyers is a central tenet in economics. We provide an oligopoly model in which … collusion can raise consumer surplus. A differentiated-product duopoly operates in two geographically-separated markets. Each … market is home to a single firm, but can import, at a cost, from the foreign firm. Under some circumstances, a perfect cartel …

that matches cartel investigations with trade data at the product level. We then estimate the world import price and … quantity effects of antidumping in cartel products. We find that the use of antidumping in cartel industries helps to maintain … higher world import prices and lower quantities during cartel periods, and to induce the establishment of a cartel. The …