Why Parties to Cartels Cheat
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seems like it would apply to quality as well in some form
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@JustinianLXXXII nope. Some frosted rice crispies. yea i haven't heard of them either
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@Superfresh602 Fruity Pebbles?
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im not taking economics or anything yet but i just watched this while i ate cereal and i got it and understood it.
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@welkerjason Either through an explicit agreement; Or through a sort of implicit credible threat.
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FUCK THE CORPORATIONS
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It's more likely that when one firm cheats, the other will as well; so each firm will face a highly inelastic demand curve below the original cooperative price and quantity of $10 and 25 units each. If the competitor matches a price decrease, neither firm will gain much market share and total revenues and profits will decrease for both firms. The incentive, therefore, is to cooperate and maintain the original price. This is what the kinked demand curve model illustrates.
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wow, this sounds like the Prisoner's Dilemma applied to economics
1 month ago 2
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LOL.. I though he meant the Mexican Cartel
NewOrleansboii 1 month ago 8
Sounds like Coke vs. Pepsi
rolloph72 1 month ago 6