Small fixed costs make collusion easier in duopoly markets, study finds.
The study found that in a market with two companies, they are more likely to work together and agree on how to split the market if the cost of serving each market is either very low or very high. If the cost is low, they are more likely to agree on how much each company should produce. If the cost is high, they are more likely to agree on how to divide the market between them.