A 2006 Paper by Margeret Levenstein and Valerie Suslow ("What

Multiple Choice

A 2006 paper by Margeret Levenstein and Valerie Suslow ("What Determines Cartel Success?") found that although cheating is a common cause of why cartels broke down, the following causes are even more common: entering firms, the nature of the demand curve, growth of the industry, and difficulty of bargaining between conspirators. What other cause is also associated with bargaining difficulties?

A) cheating
B) exiting firms
C) the nature of the industry
D) the nature of the supply curve