This paper provides a critical analysis of the paper on vertical restraints and competition policy by James Cooper et al.

Why do all the rules of good competition policy appear to fly out of the window when the banks get into trouble?

It is conventional wisdom that collusion is more likely the fewer firms there are in a market and the more symmetric they are. This is often theoretically justified in terms of a repeated non-cooperative game. Although that model fits more easily with tacit than overt collusion, the impression...