tutor2u | Oligopoly: Why do Cartels often Collapse?

Student Videos

Oligopoly: Why do Cartels often Collapse?

A Level
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.

Oligopoly: Why do Cartels often Collapse?


Exam support for 2022

Online Grade Booster Courses for A-Level Exams in May & June 2022

Exam technique, advance information support, live revision and more from the tutor2u subject specialist teams

Enrol now

© 2002-2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.