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Explain why collusion is unstable in the one-period Cournot model but may be sustainable in the repeated Cournot model, i.e., in which firms interact over
Explain why collusion is unstable in the one-period Cournot model but may be sustainable in the repeated Cournot model, i.e., in which firms interact over several periods.
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In a oneperiod Cournot model collusion firms agreeing to restrict output and share the market is unstable because of the incentive for individual firm...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
