As this chapter pointed out, most cartels fail to successfully maximize profits by restricting output an raising prices because of the incentive to cheat. However, even a cartel that can achieve...

As this chapter pointed out, most cartels fail to successfully maximize profits by restricting output an raising prices because of the incentive to cheat. However, even a cartel that can achieve sustained cooperation is not guaranteed to succeed; “success” in raising prices can actually harm a cartel in the long run. Why is this?