Collusion can earn higher prices and higher profits under the Bertrand model, but why is this an unlikely outcome in practice?

Question

Quizplus · Accepted Answer

While collusion may lead to higher prices and profits in theory, it is unlikely to occur in practice because colluding firms have an incentive to gain market share by cutting prices. If one firm cheats on the collusive agreement and lowers its price, it can attract more customers and potentially drive its competitors out of business. Therefore, collusion requires a strong, enforceable agreement among all firms involved, which is difficult to achieve in practice.

Collusion Can Earn Higher Prices and Higher Profits Under the Bertrand