An oligopoly model that describes formal collusion is the

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The cartel model describes formal collusion, where firms in an oligopoly explicitly agree to coordinate pricing and output levels. This is typically done through the formation of a cartel, which is an organization of competing firms that agree to act as a single producer and restrict output to raise prices and profits. The kinked demand curve model, cost-plus pricing model, game theory model, and horizontal merger model do not necessarily involve explicit collusion between firms.

An Oligopoly Model That Describes Formal Collusion Is the