Suppose there are five steel manufacturing companies in the world and you are one of the five manufacturers. You may compete against other manufacturers or collude with them to make profits.

1. If you choose to compete with the other companies, how would you do to achieve your goal? What negative outcomes could your strategy result?

2. If you choose to collude with them, how would you do? What are the advantage and disadvantage of this strategy compared to competition?

3. Would you choose to compete or collude with the other steel manufacturers? And why?