3. Cartel Stability

Assigned Reading


Central Idea: It's tough enforcing collusion without binding agreements, but communication helps.

Antithesis: Without antitrust laws, all firms will charge the monopoly price.


Topics That Might be Discussed in Class


Important Terms: Duopoly, Oligopoly, Collusion, Cartel.

Additional Material


For Next Time


Return to the Thinking Strategically Home Page, at http: //pacioli.bus.indiana.edu/erasmuse/g570/g570.htm. Send comments to Prof. Rasmusen . Last updated: March 14, 2002.