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. the collective payoff to all the cartel members is lower when they all abide by the cartel agreement.
D. it's a dominant strategy for each cartel member to cheat on the cartel agreement.


Answer: D

Economics

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