Collusion survives because it does not have an incentive problem as is illustrated by the prisoner's dilemma.

Question

Quizplus · Accepted Answer

The prisoner's dilemma actually illustrates the incentive problem that makes collusion difficult to sustain. Each participant has an incentive to defect from the collusion agreement in order to maximize their own payoff, which leads to a less favorable outcome for both parties than if they had cooperated.

Collusion Survives Because It Does Not Have an Incentive Problem