3. Cartel Stability
- Packet: "The Kleit Oligopoly Game"
It's tough enforcing collusion without binding agreements,
Without antitrust laws, all firms will charge the monopoly
Topics That Might be Discussed in Class
- We will do the Kleit oligopoly experiment in class.
For Next Time
- Thinking Strategically (Avinash Dixit and
Nalebuff), Chapter 4, Resolving the Prisoner's Dilemma
- Koselka, Rita, ``Businessman's Dilemma: An Interview
Nalebuff,'' Forbes, 11 October 1993, p. 107-
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. Last updated: March 14, 2002.