Fershtman, Chaim; Pakes, Ariel - In: RAND Journal of Economics 31 (2000) 2, pp. 207-236
We provide a collusive framework with heterogeneity among firms, investment, entry, and exit. It is a symmetric-information model in which it is hard to sustain collusion when there is an active firm that is likely to exit in the near future. Numerical analysis is used to compare a collusive to...