Why Cartels don’t work?

Added: 2026-05-24

[00:00:00]What if Coke and Pepsi secretly decide to team up? I'll ask you an even more insane question. What if Boeing and Airbus did the same?

[00:00:11]Together, they control almost the entire commercial aircraft market.

[00:00:16]And if they decide to cooperate, plane prices could shoot up overnight. And the airlines would have no choice but to comply. Economists call it a cartel.

[00:00:27]And no, not that kind of cartel.

[00:00:29]But cartels often don't work for the same reason teenage relationships don't work.

[00:00:35]Trust issues. Because what if a company does more production and gives hidden discounts? The cartel falls apart.

[00:00:42]And it's a price war again.

[00:00:44]It's basically prisoner's dilemma in real life. So, I guess Coke and Pepsi will not be cooperating after all.

[00:00:52]Unless they already do.