According to the cheating model, assuming little or no product differentiation among a small number of firms, if one firm decides to cheat on a collusive agreement by reducing its prices, others will as well and, in the long run, firms in this industry will earn no economic profits.

Cartel, oligopoly

Explanation:

In this kind of market with little producers and little differenciation among the products there are no incentives for other companies to enter because of the barriers, so it's extremely likely that if one of them reduces their prices this industry can't generate economic profits.

answer; drop shippers;

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."