FIRM B Collude Collude Produce 20m Compete Produce 35m A: $200m profits A: $300m profits B: $170m profits Produce 30m B: $300m profits A: $50m profits A: $100m profits Compete Produce 50m B: $400m profits B: $200 profits Firms A and B have a choice to compete or collude with payoffs as shown above. The equilibrium outcome is Both A and B collude A competes and B colludes Both A and B compete There is no equilibrium outcome to the game A colludes and B competes
FIRM B Collude Collude Produce 20m Compete Produce 35m A: $200m profits A: $300m profits B: $170m profits Produce 30m B: $300m profits A: $50m profits A: $100m profits Compete Produce 50m B: $400m profits B: $200 profits Firms A and B have a choice to compete or collude with payoffs as shown above. The equilibrium outcome is Both A and B collude A competes and B colludes Both A and B compete There is no equilibrium outcome to the game A colludes and B competes
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter18: Auctions
Section: Chapter Questions
Problem 18.1IP
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