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Why Cartels don’t work?
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329 vues6J'aime54manasbohat6883Version originale : 2026-05-22

Cartels, such as OPEC or hypothetical collaborations between Coke/Pepsi or Boeing/Airbus, fail because individual members have incentives to cheat by secretly increasing production and offering hidden discounts, which destroys the cartel's price-fixing agreement and triggers a price war, illustrating the prisoner's dilemma in real-world oligopolies.

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