11.12.02

PRICELESS. I'm grading some economics of public policy exams, and one of the questions is, "Briefly explain why the creation of a collusive agreement creates an incentive to cheat." Here's an answer. "Collusive agreement creates an incentive to cheat according to the Coarse theorem, it's better to cheat when to firms come to an agreement and the other person see's an incentive to gain a higher profit, he will take that extra step."

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