When competing firms or nations collude to form a cartel, the intention is to set one common price. This tendency to avoid competition should bring about stability. Paradoxically, however, cartels are usually unstable. Why?

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The Answer of When competing firms or nations collude to form a cartel, the intention is to set one common price. This tendency to avoid competition should bring about stability. Paradoxically, however, cartels are usually unstable. Why?

When Competing Firms or Nations Collude to Form a Cartel