g. Suppose the firms cannot get the government to enforce their cartel agreement. Explain how such cartel
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g. Suppose the firms cannot get the government to enforce their cartel agreement. Explain how such cartel agreements might be sustained as a subgame perfect equilibrium if, each time the firms produce, they expect there is a high probability that they will again each produce as the only firms in the industry in the future.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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