Instructions for Cartel Formation

In this stage, you have the option to form a cartel with the other two firms in your market. If a cartel is formed, a chat window will be available on the next page allowing you to communicate on what prices to set. The chat window will be open for 60 seconds in the first round, and then 30 seconds in subsequent rounds. All three firms must choose to form the cartel for the chat to become available. When a cartel has been formed, it remains active until the game ends or until it is discovered by the competition authority.

It is important to keep in mind that forming the cartel is illegal, and bears a certain risk. If a cartel is formed, there is a 15% chance that it is fined by a competition authority.