Colluding oligopolists face a conflict between maximizing joint market profit or their own market share.

Question

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Colluding oligopolists face a tension between maximizing their joint profits by setting high prices and limiting output, versus maximizing their individual market share by setting lower prices and potentially capturing more customers. This conflict can lead to breakdowns in collusion and the pursuit of individual self-interest.

Colluding Oligopolists Face a Conflict Between Maximizing Joint Market Profit