How do changes in competitive intensity affect trade patterns? Models of collusivearrangements in spatially separated markets generate testable predictions of the effects of collusion on price, trade patterns and concentration. We exploit a quasi-natural experiment associated with increased...

The U.S. Department of Justice, the European Commission, and the Organization for Economic Cooperation and Development have all recently voiced concern about international price- fixing cartels. The U.S. and European Union have increased prosecution of international cartels in the past decade,...