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Collusive agreements between two firms are most likely to be honored when the game: A ) is a one - time game with the opportunity
Collusive agreements between two firms are most likely to be honored when the game:
A is a onetime game with the opportunity for a prisoner's dilemma.
B has a Nash equilibrium that differs from the outcome that maximizes the payoffs to the two firms.
C is repeated and both firms offer credible threats if the other violates the agreement.
D is a zerosum game.
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