We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face … deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find … of capacity is high enough, holding current demand constant, prices in the boom will be generally lower than the prices …

This paper analyses the interplay of capacity utilisation, capacity constraints, demand constraints and price … reluctant to reduce prices in response to demand constraints. At the macro level, the implied capacity-utilisation Phillips … curve has a convex shape during periods of excess demand and a concave shape during periods of excess supply. Our results …

We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face … deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find … of capacity is high enough, holding current demand constant, prices in the boom will be generally lower than the prices …

We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face … deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find … of capacity is high enough, holding current demand constant, prices in the boom will be generally lower than the prices …