stakes of collusion. On the other hand, it creates an asymmetry between the integrated firm and the unintegrated competitors … cooperative equilibrium, which potentially harms collusion. As we show, the optimal collusive profit-sharing agreement takes care … the asymmetries in the non cooperative state. As a result, vertical integration generally favors collusion. …

We investigate the impact of vertical mergers on upstream firms' ability to sustain tacit collusion in a repeated game …. We identify several effects and show that the net effect of vertical integration is to facilitate collusion. Most … importantly, vertical mergers facilitate collusion through the operation of an outlets effect: cheating unintegrated firms can no …

stakes of collusion. On the other hand, it creates an asymmetry between the integrated firm and the unintegrated competitors … cooperative equilibrium, which potentially harms collusion. As we show, the optimal collusive profit-sharing agreement takes care … the asymmetries in the non cooperative state. As a result, vertical integration generally favors collusion …