Customers of a business platform of an online travel agency learn about hotel quality from the displayed rating. Alas, this rating is exposed to manipulation by the hotels. The platform detects manipulations and imposes sanctions on violating hotels. This study shows that, surprisingly, harsh...

In a world of experience goods, two costly ex-post disciplinary actions can be used against malpractice of firms: consumer lawsuits and government investigation. We distinguish between government exectiveness in detecting 'bad behavior' vs. 'good behavior' of firms - both play a key role in the...

Recent antitrust regulations in several countries have granted exemptions for col- lusion aimed at achieving environmental goals. Firms can apply for exemptions if collusion helps to develop or to implement costly clean technology, particularly in sec- tors like renewable energy, where capital...