Colombo, Luca; Labrecciosa, Paola - In: Journal of Public Economics 97 (2013) C, pp. 196-205
This paper studies the impact of commodity taxes on the sustainability of collusion in imperfectly competitive markets. We consider both a Cournot and a Bertrand supergame with discounting, with collusion being supported by either grim trigger strategies or stick-and-carrot optimal punishments....