Online Appendix for 'Feedback and Contagion through Distressed Competition'
33 Pages Posted: 27 Jul 2020 Last revised: 18 Aug 2023
Date Written: August 17, 2023
Abstract
This is the supplemental material for the paper titled “Feedback and Contagion through Distressed Competition” (Chen et al., 2023b). It includes a comprehensive summary of the direct empirical evidence on tacit collusion in the literature. It also provides empirical tests for key theoretical predictions, additional quantitative results, and the numerical algorithm. Moreover, a note on additional materials and literature discussions can be found in Chen et al. (2023a), which is available on the authors’ personal websites.
Keywords: Competition-distress feedback loop, Distress spillover, Predatory pricing, Price war, Profitability-leverage puzzle, Collusion
JEL Classification: C73, D43, E31, G3, L13, O33
Suggested Citation: Suggested Citation