Online Appendix for 'Feedback and Contagion through Distressed Competition'

Abstract

This is the supplemental material to the paper titled “Feedback and Contagion through Distressed Competition” (Chen et al., 2022a). It includes the rigorous mathematical proofs for all the theoretical results in Chen et al. (2022a), and a comprehensive summary of the direct empirical evidence on tacit collusion in the literature. It also provides many additional quantitative and empirical results.

Keywords: Competition-distress feedback loop, Distress spillover, Predatory price war, Profitability-leverage puzzle, Tacit collusion

JEL Classification: C73, D43, E31, G3, L13, O33