critical discount factor required to sustain collusion. This result is shown to hold for Cournot oligopoly as well as for … Bertrand oligopoly when collusion is sustained with Nash-reversion strategies or optimal-punishment strategies. In a Cournot …

collusion based on the ratio of collusive to monopolistic profits. We then prove that as the number of firms goes to infinity …, our collusive strategy profile is an equilibrium as long as the discount factor is below 0.63. Thus, collusion is robust …

collusion game. Consistent with the existing literature on communication and collusion, even minimal communication leads to a … short run increase in collusion. However, in a limited message-space treatment where subjects cannot communicate contingent … strategies, this initial burst of collusion rapidly collapses. When unlimited pre-game communication is allowed via a chat window …

switch from exporting to undertaking FDI when trade costs are relatively high. Also, collusion over FDI may increase welfare. …

switch from exporting to undertaking FDI when trade costs are relatively high. Also, collusion over FDI may increase welfare. …

punishment. Collusion is thus more difficult, the closer firms cooperate in manufacturing. Moreover, given competition or … collusion in the market, joint production yields the highest profit and welfare. …