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4 What is the structure and organization of meetings?(How Do Cartels Operate?)

From: Foundations and Trends in Microeconomics  |  Date: 7/1/2006  |  Author: Harrington, Joseph E., Jr.

Thus far we have discussed the collusive outcome--in terms of price and the allocation of supply--and the manner in which it was enforced. Enforcement deals with monitoring the agreement, punishing for violations, and responding to external sources of disruptions. All of these decisions are handled within the context of communication between the members of the cartel. A potentially important determinant of cartel behavior is then the frequency with which firms communicate. This can ...

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