What does cheating in a cartel mean What kind of incentives

What does “cheating in a cartel” mean? What kind of incentives are used in a cartel to deter cheating? What are six examples of cheating in a professional sports league?

Solution

Cheating in cartel means not following the set pattern of price and quantity.Cartels cheat when they overproduce and charge a lower price,so,that their products are sold more in the more.

Incentives to deter cheating-

Fix non-price factors: quotas, information sharing rules etc
• Dividing the market according to clients, geographies etc
• Fixing market shares of subsequent firms
• Meeting competition clauses: the sales contract stipulates that if
another supplier offers a lower price the contracted supplier will
match it or free the client from the contract.

Examples of cheating in sports league-

shuffling the feet.

2.Not putting out.

3.Curving the stick.

4.Holding.

5.Screening the goalie.

6.Fake getting hit by a pitch.