Savings Constraints And Microenterprise Development: Evidence From A Field Experiment In Kenya

How do changes in competitive intensity affect trade patterns? In this paper, the authors exploit a quasinatural experiment associated with increased anti-trust enforcement activity over the last two decades. A large number of international markets underwent a change in competitive intensity as they shifted from explicit collusion to oligopolistic competition. The authors draw on models of collusive arrangements in spatially separated markets to generate testable predictions of the effects of collusion on price, trade patterns and concentration.