Cartels busted: New study reveals how firms cheat the system
The article explores how companies can collude to fix prices even when their sales are being monitored. The researchers studied a type of game played by two companies where they found that if both companies are punished equally for cheating, collusion cannot be sustained. However, if one company compensates the other for selling less than agreed, collusion can be maintained. This asymmetric punishment method mirrors how real-life cartels transfer sales among members to keep prices high.