Cartel agreements are difficult to sustain because:
A)it's a dominant strategy for each cartel member to cheat on the cartel agreement.
B)the collective payoff to all the cartel members is lower when they all abide by the cartel agreement.
C)cartel members do not face the economic incentives inherent in a prisoner's dilemma.
D)it's usually easy to discover if one of the members has cheated.

Question

Quizplus · Accepted Answer

Cartels are inherently unstable because each member has an incentive to cheat on the cartel agreement.

Cartel Agreements Are Difficult to Sustain Because