George Stigler, a Nobel laureate in economics, suggested that one reason why oligopolies have prices higher than competitive industries is that tacit coordination concerning output and price is much easier when there are only a few competing firms. In addition, it is easier to detect cheating on some agreed-upon price or output level. Evaluate this argument.

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The Answer of George Stigler, a Nobel laureate in economics, suggested that one reason why oligopolies have prices higher than competitive industries is that tacit coordination concerning output and price is much easier when there are only a few competing firms. In addition, it is easier to detect cheating on some agreed-upon price or output level. Evaluate this argument.

George Stigler, a Nobel Laureate in Economics, Suggested That One