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LJ HDR D Question 20 Consider the following pricing game: Player B Strategy Low Price High Price Low Price $15. $15 $60, $0 Player A

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LJ HDR D Question 20 Consider the following pricing game: Player B Strategy Low Price High Price Low Price $15. $15 $60, $0 Player A High Price $0, $60 $20. $20 Which of the following statements is correct about this game? O If both players know the game will be played exactly 10 times, they have an incentive to collude and keep their prices high. The one-shot Nash equilibrium is for both players to set a high price. O Collusion would never make sense if this game were repeated an uncertain number of times. O If the game were infinitely repeated, high prices could be sustained as long as the interest rate is less than 12.5%

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