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Unformatted text preview: Cheat: Firms unilateraly decr P and incr Q. Firm M Cheat Collude Firm C Cheat M: $ C: $ M: $ C: $ Collude M: $ C: $ M: $ C: $ Assume I'm M If C colludes & I collude: If C colludes & I cheat: If C cheats & I collude: If C cheats & l cheat: Same reasoning follows for M: D:\ECON202\CS\CS 14 Prisoner'sDil.wpd...
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- Spring '08
- Clyde, CARTEL AGREEMENT Collude, Clyde Confesses, Clyde Denies