How does each of the following affect the firms’ ability to organize and sustain a viable cartel?
1.entry is easy into the market
2.there are many firms
3.firms are asymmetric in their costs
4.firms are mostly interested in the short-run
5.firms trade frequently, in many markets
6.firms sell many products (e.g. supermarkets)
7.there is a trade organization in the industry
8.the information on prices
9.bulky orders, or some buyers are large
10.the demand for the product is growing
11.the product is homogeneous
12.there are frequent shocks to demand and costs
13.the marginal costs increase steeply
14.firms adopt price-matching guarantees or most –favored nation clauses
15.detection of cheating on the cartel agreement is fast and accurate