This article investigates the welfare effects of alternate producer collusion schemes in a context where collusion is authorized in order to cover fixed costs. Using a linear equilibrium displacement model, we find evidence that, when the producer group is allowed to control quota levels, an...

This review critically looks at the theoretical and empirical foundations of positive mathematical programming and its evolution in the past decade or so. We show how the need to model new empirical phenomena has induced the literature to rethink model specifications and to address new questions...