Grade Booster student workshops are back in cinemas for 2022. Learn more


Student Videos

Oligopoly: Why do Cartels often Collapse?

A Level
AQA, Edexcel, OCR, IB, Eduqas, WJEC

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?

Boston House,
214 High Street,
Boston Spa,
West Yorkshire,
LS23 6AD

Tel: +44 0844 800 0085

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