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Do you think cooperation works in this case? If No, explain why. If Yes, answer the following questions. a. What is the cooperation strategy? b.
Do you think cooperation works in this case? If "No", explain why. If "Yes," answer the following questions. a. What is the cooperation strategy? b. If the interest rate is 7.25%, what strategy would be better for each firm? Should they choose to cooperate or cheat? How much will each player earn for both cheating and cooperation? c. For what range of interest rates could these firms use trigger strategies to support the collusive level of pricing? d. Assuming the probability of ending this price game is 2%, what is the optimal strategy for the firms: cheating or cooperation? What if the probability of ending the game is 90%
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