We experimentally study the effect of information about competitors ́actions on cartel stability and firms ́incentives to form cartels in Cournot markets. As in previous experiments, markets become very competitive when individualized information is available and participants cannot...

We experimentally study the effect of information about competitors' actions on cartel stability and firms' incentives to form cartels in Cournot markets. As in previous experiments, markets become very competitive when individualized information is available and participants cannot communicate....

Collusion sustainability depends on firms' ability to impose sufficiently severe punishments in the event of deviation from the collusive rule. We extend results from the literature on optimal collusion by investigating the role of a limited liability constraint. We examine all situations in...