When Does Predation Dominate Collusion?
研究寡头企业重复竞争，发现当企业可能因价格战破产且财务实力随机变化时，耐心企业会立即开战直至只剩一家；而进入可能或缺乏耐心反而促进合谋。
I study repeated competition among oligopolists. The only novelty is that firms may go bankrupt and permanently exit: the probability that a firm survives a price war depends on its financial strength, which varies stochastically over time. Under some conditions including no entry, an anti-folk theorem holds: when firms are patient, so that strength levels change relatively quickly, every Nash equilibrium involves an immediate price war that lasts until at most one firm remains. Surprisingly, the possibility of entry may facilitate collusion, as may impatience. The model can explain some observed patterns of collusion and predation.