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derived in part (b) indenitely (grim-trigger strategy). (0) For what values of 6 is this agreement stable? (Hint: A collusive agreement is stable on if

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derived in part (b) indenitely (grim-trigger strategy). (0) For what values of 6 is this agreement stable? (Hint: A collusive agreement is stable on if both rms are willing to stay in the agree- ment.) (d) Now suppose that the rms decide to split the prots in the collusive agreement such that the low cost rm gets share 3;, of the prots and the high cost rm gets 1 3;, of the prots. In order to make the agreement stable for smaller values of (5 relative to part (0), should 3L be more or less than 1/2? Explain

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