Can somebody help me with my hmwrk?? Economics...?

  • Thread starter Thread starter Tatianne L
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Tatianne L

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This is the question:

How would game theory work if the fast food hamburger restaurant chains decided to form a cartel?
• What would be the advantage for the restaurant of staying with the cartel?
• How would a restaurant know to stay or break from the cartel?
• What advantages would there be for a restaurant to break from the cartel?

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I don't know what the advantages/disadvantages are??? Would it be break its quota and sell more burgers? I don't think that makes any sense... can somebody please help me with the pros/cons of this...??

Thank YOU!!!!
 
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