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An Analogy for Price Fixing in the Royal Tenenbaums

by AdrianFohr

Sometimes several agents will collude to try to keep prices high in their market segment. However, these attempts often fail. It only takes one defector to decide, 'If I lower my price just a little I can grab a large market share and have even larger profits.' After one person defects that is typically all that is needed for all parties to start competing again.

Cartels, Game Theory and Families

In this scene, several people are playing a game. The have split into two teams of two but one player decides that if he double-crosses another player that he can win the entire game for himself.

from The Royal Tenenbaums (2001)
Creator: Wes Anderson
Distributor: Buena Vista Pictures
Posted by AdrianFohr