In cartels, the reason that the monopoly output is unstable is due to the factors that are present in a prisoner's dilemma.

Question

In cartels, the reason that the monopoly output is unstable is due to the factors that are present in a prisoner's dilemma.
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Quizplus · Accepted Answer

In cartels, members face a temptation to cheat on agreed outputs or prices to gain higher profits, similar to the prisoner's dilemma where individuals have an incentive to betray the other for personal benefit, making the monopoly output unstable due to lack of trust and enforcement mechanisms.

In Cartels, the Reason That the Monopoly Output Is Unstable