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> As long as demand exists for the product, cartel members make more money than regular market actors. Defectors can make even more money These two are complet
by Aunche 3y ago
> As long as demand exists for the product, cartel members make more money than regular market actors. Defectors can make even more money
These two are completely contradictory statements. "Regular market actors" are the same as "defectors." Fracking companies, for example would not be able to exist without OPEC driving up the price of oil because it would be too expensive.
- tsimionescu 3y agoBuyers are also market actors. Also, suppliers who haven't been part of the cartel don't have access to their pricing strategy, and so can't profit as much. Defectors know exactly for some time, and can use that information to beat the market and the cartel in the short term.