Prisoner's dilemma is a concept from game theory that helps explaining why cartels often work effectively.

Name: Prisoner's dilemma is a concept from game theory that helps explaining why cartels often work effectively.
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Prisoner's Dilemma actually illustrates why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so, which can explain why cartels might fail to work effectively due to incentives for individual members to cheat on agreements.

Prisoner's Dilemma Is a Concept from Game Theory That Helps