shape competition by investing into production capacity while being subject to unexpected demand shocks with persistence …. The model shows that a negative demand shock can facilitate cartel formation despite lowering collusive profits. This is … because lower demand reduces capacity utilization and makes competition more intense especially when capacities are durable …

effective demand in a growth context, by which a permanent demand shock has a permanent growth effect, is consistent with the … Nachfrage für die US-amerikanische verarbeitende Industrie. Im Wachstumskontext besagt das Prinzip der effektiven Nachfrage …