Most of the theoretical work on collusion and price wars assumes identical firms and an unchanging environment, assumptions which are at odds with what we know about most industries. Further that literature focuses on the impact of collusion on prices. Whether an industry can support collusion...

Most of the theoretical work on collusion and price wars assumes identical firms and an unchanging environment, assumptions which are at odds with what we know about most industries. Further that literature focuses on the impact of collusion on prices. Whether an industry can support collusion...

There is a large literature on the impact of price-matching and price-beating guarantees (low-price guarantees) on competition. Existing studies typically employ static models and the results are sensitive to modeling assumptions such as the type of guarantees, consumer hassle costs and consumer...