Firms ability to organize and sustain a viable cartel

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Reference no: EM131009663

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

Reference no: EM131009663

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