The implementation of a Single Customs Territory by East African Community countries is intended to ease the movement of goods across borders by cutting costs and time through harmonization and simplification of customs documents, removal of burdensome customs procedures, and automation of...

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....