What are the effects of increased transparancy on cartel stability?

Increased market transparency creates the following effects: • Cartel members will find it easier to detect deviators • At the same time, expected gain from deviation and loss after break-up becomes larger • Deviations from cartels become less attractive as the gains from deviation decreases. Hence, increases market transparency can lead to more cartel formation. However, there is a dilemma regarding this. Market transparency can increase on both the producer side (PT) and consumer side (CT).