e. * Suppose the two firms enter a cartel agreement with a view toward an infinite number
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e. * Suppose the two firms enter a cartel agreement with a view toward an infinite number of interactions. Suppose further that $1 one period from now is worth $d , $1 now. What is the lowest level of d for each of the bargaining settings such that the cartel agreement will be respected by both firms if they would otherwise be Cournot competitors?
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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