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Do price wars facilitate collusion? A study of the bromine cartel before World War I

An evaluation of the factors that cause price wars and the participants' behaviors, motivations and strategies in such situations is presented. Based on the bromine industry records from 1885 to 1914, it is concluded that price wars during that time were mainly caused by lack of coordination and bargaining among the participants as well as failure of improperly timed collusion attempts.