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We're Coca-Cola and Pepsi,
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so we really don't want to have to bring the mafia in,
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Although maybe we do, I don't know.
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So basically, we're stuck with this verbal agreement
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and we both have an incentive to cheat
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and produce more whatever it is, sugar water.
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Now, in practice, this is not the only problem facing two firms
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who are trying to produce the monopoly output.
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In practice, when firms try and have these agreements,
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which are not contracts, to try and produce joint monopoly output,
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what else goes wrong?
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So you can imagine some firms trying to have an agreement.