Topic Videos
Oligopoly: Why do Cartels often Collapse?
- Level:
- A-Level
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 21 Mar 2021
Many collusive agreements between firms in an oligopoly eventually collapse either because of exposure by the competition authorities, the impact of a recession or perhaps because of a breakdown in co-operation between firms and cheating on output agreements. A simple game theory pricing game can also help to explain why a price-fixing cartel can be undermined over time.
You might also like
Revenues and Profits in the UK Cinema Industry
Study Notes
How discounters are beating the supermarkets
23rd September 2015
Game Theory - Different Types of Games
Study Notes
Financial Market Failure (Financial Economics)
Study Notes
Ten Companies that dominate Global Brands!
6th November 2016
Asda-Sainsbury Merger under threat from the CMA
Study Notes
Who are Britain's Biggest Mortgage Lenders?
1st December 2022
CMA to investigate possible price collusion in baby formula milk industry
20th February 2024