Skrzypacz, Andrzej; Sannikov, Yuliy - Graduate School of Business, Stanford University - 2005
We show that it is impossible to achieve collusion in a duopoly when (1) goods are homogenous and firms compete in quantities, (2) new, imperfect information arrives continuously, without sudden events and (3) firms are able to respond to this new information quickly. The result holds even if we...