Managers compensation and collusive behaviour under cournot oligopoly

This paper shows that the existence of a concrete outside option for firms' high-skilled workers (for instance, the managers) may induce, under specific circumstances, oligopolistic firms to adopt restrictive output practises. In particular, the paper characterizes the conditions under which, in a Cournot oligopoly, existing firms behave more collusively than in a standard Cournot model without endogenous wages.