Madio, Leonardo; Pignataro, Aldo - 2022
small firm induces a partial conspiracy that is Pareto-dominant. Implications for cartel identification and enforcement are … constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little … incentive to deviate from a cartel. We also present conditions for the emergence of a partial cartel, with the capacity …