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The Theory of Collusion and Competition Policy
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A review of the theoretical research on unlawful collusion, focusing on the impact and optimal design of competition law and enforcement.
Collusion occurs when firms in a market coordinate their behavior for the purpose of producing a supracompetitive outcome. The literature on the theory of collusion is deep and broad but most of that work does not take account of the possible illegality of collusion. Recently, there has been a growing body of research that explicitly focuses on collusion t...