This paper gives an unified explanation of some of the most widely known facts of the cartel literature: prices gradually rise, then remain constant, there can be price wars and some cartels break down. In this model consumers are loss averse and efficiency of a competitive fringe is not...

We examine price competition with homogeneous products in the presenceof general common ownership arrangements allowing for different corporate control structures. We show that equilibria with positive profits exist (including themonopoly outcome) when the manager places the same weight on the...