BENCHEKROUN, Hassan; XUE, Licun - Centre Interuniversitaire de Recherche en Économie … - 2005
marginal cost is "small enough", the grand coalition (i.e., when the cartel includes all firms) is stable: it is unprofitable … for a firm to exit the cartel. Moreover we show that a cartel of 3 firms is stable for any positive rate of increase of … firm to join the coalition. When firms use open-loop strategies we show that no cartel is stable. …