Collusive agreements in the form of cartels among firms are complex structures. The involved firms need to agree on prices and sales quotas that are legally not enforceable. Market characteristics that foster cartels’ failure or success are widely examined. However, the interplay between the...

Governing the complex institution of a business cartel is a highly involved topic. Operating outside the legal sphere, the cartel firms simultaneously need to harmonize prices and quantities, avoid discovery by the authorities, but also ensure that no member cheats on the others. This...