Collusive Oligopoly or Cartel Model | Microeconomics

In a model of collusive oligopoly, we discuss the economics of agreement between the firms in an undifferentiated oligopolistic industry. When these firms get together and agree to set prices and outputs so as to maximise total industry profits, they are known as a cartel. Assumptions of the Cartel Model: For the sake of simplicity, we shall make here the [...]