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Cartel cheating

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Could you please provide with an example of realistic for the following theme:
1- Price competition and the prisoners' dilemma
2- Cartel cheating

Both examples should quote from internet

NOTE:
The amount of words is not highly important, brief of the examples and a links guide me to the full examples is sufficient.

Thanks,

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Solution Summary

The expert examines Cartel cheater. Price competition and the prisoner`s dilemma are determined. Examples of both are provided.

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1. Price competition and prisoner's dilemma

example OPEC

Opec has 11 oil producing countries and they set a fixed amount of output collectively to profit maximize. However, there are always some countries who cheat by producing more (as prisoner's dilemma suggested). This is a good article which outlines this issue.

http://www.thebulletin.org/web-edition/columnists/kurt-zenz-house/opec-and-the-prisoners-dilemma

Cartel Cheating

example, Auction houses, Christie's and Sotheby's

There are two large ...

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    Question 5 The cheating firm knows that the other firms will produce the cartel quantity, that is, 1/6 each.

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    If this game is played only once, South Africa has an incentive to cheat (increase production) because the profit derived from cheating is 20m, higher than 18m derived from the cartel.

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    However, one firm may cheat by producing more, and the outcome is that the cheating firm will increase its profit while the other loses its profit. Here, you can see why a cartel is inefficient.

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    It has tolerated cheating on the part of other cartel members, and cut its own production to compensate for other members having exceeded their production quotas. This actually gives them good leverage, because with most members at full production.

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