10-16-07 - purpose of earning an economic profit.-They can...

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10-16-07 Econ Prisoner’s Dilemma : $$$ Trust is essential $$$ - If they cooperate, then they get a good result. - Nash Equilibrium leads players to choose a bad result. Cartel Example : - coalitions, firms, or nations make agreement to decrease output for the
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Unformatted text preview: purpose of earning an economic profit.-They can both produce the optimal amount of outputs. However, one can take advantage by decrease price or increase output. If that happens then the one who cheated gets all the profit....
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This note was uploaded on 12/02/2009 for the course ECON econ taught by Professor For got during the Spring '09 term at UCSD.

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