Cartel agreements are difficult to sustain because:
A. it's usually easy to discover if one of the members has cheated.
B. cartel members do not face the economic incentives inherent in a prisoner's dilemma.
C. it's a dominant strategy for each cartel member to cheat on the cartel agreement.
D. the collective payoff to all the cartel members is lower when they all abide by the cartel agreement.
Answer: C
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