The literature on cartel stability sidelines antitrust policy, whereas the literature on antitrust policy tends to … neglect issues of cartel stability. This paper attempts to connect these two interrelated aspects in the context of an … augmented quantity leadership model. The cartel is the Stackelberg quantity leader and the fringe firms are in Cournot …

reconciled with principles of oligopoly theory. This article (1) presents a fundamental reconceptualization of our understanding …

cartel, a group of competing fringe firms, and a welfare maximizing antitrust authority. In existing models of cartel … behavior, at least one of these actors is always missing. By contrast, the present paper's oligopoly model includes all three … actors. The cartel is the Stackelberg quantity leader and the fringe firms are in Cournot competition with respect to the …