This paper estimates a spatial bus garage entry model to test whether anti-competitive market sharing agreements exist between firms in the London bus route procurement market. Our approach is based on a simple but powerful idea: a necessary condition for collusion is the triggering of a punishment when a firm deviates to the competitive equilibrium.

Fiscal policy offers a number of levers to reduce carbon emissions. Climate change mitigation can for example be implemented through carbon taxation on the production or consumption side, or through debt-financed public investments in emission-reducing infrastructure.