We study anticompetitive horizontal mergers in a dynamic model with noisy collusion. At each instant, firms either privately choose output levels or merge to form monopoly, trading off the benefits of avoiding price wars against costs merging. The potential decreases pre-merger collusion, as punishments effected by are weakened. thus extend result Davidson and Deneckere [Davidson C, R (1984) Ho...

Modeling the competition among telecommunication operators (or providers) as a repeated game may explain why tacit collusion to maintain high charging prices can be observed. Such outcomes clearly do not benefit the users, nor do they provide operators with incentives to improve the network quality of service to outperform their competitors. We propose a simple regulation based on price stabili...