How Do You Enforce an Illegal Agreement?
Podcast: EconWorks Podcast · EconWorks
Opublikowano: 2026-09-29
The problem with a cartel is that its agreement is illegal. If a member of a cartel cheats, the other members can’t simply sue in court and get a judge to enforce the agreement. So cartels need their own systems of monitoring, detection, and punishment. On this episode of How Cartels Really Work, we take a look at the economics of cartel discipline through the alleged shipping-container “Box Cartel,” which allegedly used production quotas, financial penalties, and 87 cameras across 49 production lines to ensure compliance. What is surprising is the punishment. If a cartel member cheats...