Cartels
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Cartels: This section discusses cartels: collections of firms that organize in an attempt to increase their joint market power and raise profits. A careful discussion of Figure 11.1 gives an opportunity to discuss how cartels raise profits by jointly behaving as a monopoly would behave. It is worth keeping in mind that the next chapter on Game Theory will provide additional modeling tools for discussing collusion, so providing students with a solid intuitive explanation for why some cartels succeed and endure over time and others collapse is very useful.

