Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Chapter 13, Problem 5QFR
To determine
To explain:
The longevity of collusive agreements indicated by prisoner's dilemma.
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What does the prisoner’s dilemma teach us about the behavior of oligopolists?
What is the prisoner's dilemma, and what does it have to do with oligopoly?
What is an example of a legal collusive agreement?
Chapter 13 Solutions
Principles of Economics (Second Edition)
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Similar questions
- Give two examples other than oligopoly that show how the prisoners' dilemma helps to explain behavior.arrow_forwardIf a group of sellers could form a cartel, what quantity and price would they try to set? What is the prisoner's dilemma, and what does it have to do with oligopoly?arrow_forwardExplain what a prisoner’s dilemma is and relate your explanation to the situation that the members of an oligopoly may face.arrow_forward
- Does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing selfinterest? Explain brieflyarrow_forwardCarefully define 'collusion' and use a Game theory model to show why it may occur.arrow_forwardGive two examples of a prisoner's dilemma that involves more than two playersarrow_forward
- What are the main features of oligopoly market structure ?arrow_forwardUnder which of the following game theory circumstances is a collusive outcome most likely? Prisoner's dilemma Repeated games Games with dominant-strategy outcomes Games with Nash equilibriumarrow_forwardThe labels are the possible profits (in millions) that two firms in a duopoly can make depending on the quantity produced by each firm (Peter's profits are shown in the blue boxes and Paul's profits are shown in the green boxes). Place a number label into each box to show a prisoner's dilemma.arrow_forward
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