As this chapter pointed out, most cartels fail to successfully maximize profits by restricting output and raising

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As this chapter pointed out, most cartels fail to successfully maximize profits by restricting output and raising prices because of the incentive to cheat. However, even a cartel that can achieve sustained cooperation is not guaranteed to succeed; “success” in raising prices can actually harm a cartel in the long run. Why is this? mj6

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Modern Principles Of Economics

ISBN: 9781429239974

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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