DRAMs (dynamic random access memories) are used for storage in a wide range of consumer and industrial electronics, including PCs and mobile phones. DRAM manufacturing is a capital-intensive industry and the product is fairly homogenous. In 2004, five companies - Elpida, Hynix, Infineon, Micron, and Samsung - controlled 80% of the world wide DRAM market, while the next five accounted for about 17%. In the early 2000s, executives of the five largest companies agreed to fix the prices of DRAMs for sale to computer manufacturers. They held meetings to discuss prices, and exchanged information on sales to particular customers.

(a)What factors would make this easy to enforce the DRAM cartel?

(b)Why did the DRAM cartel members provide sales information to each other?

(c)Supposing that the DRAM cartel members wished to limit the exchange of information, which customers should they select to monitor?