Managers compensation and collusive behaviour under Cournot oligopoly

This paper shows that the existence of a concrete outside option for firms' high-skilled workers (forinstance, the managers) may induce, under specific circumstances, oligopolistic firms to adoptrestrictive output practises. In particular, the paper characterizes the conditions under which, in aCournot oligopoly, existing firms behave more collusively than in a standard Cournot model withoutendogenous wages.