Ganslandt, Mattias; Persson, Lars; Vasconcelos, Helder - C.E.P.R. Discussion Papers - 2008
Many convicted cartels have a leader which is substantially larger than its rivals. In a setting where firms face indivisible costs of collusion, we show that: (i) firms may have an incentive to merge so as to create asymmetric market structures since this enables the merged firm to cover the...