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There are very elaborate and strict laws prohibiting collusion in oligopoly markets.According to the prisoners' dilemma model, firms in an oligopoly have a dominant strategy
There are very elaborate and strict laws prohibiting collusion in oligopoly markets.According to the prisoners' dilemma model, firms in an oligopoly have a dominant strategy to cheat on any collusive agreement.In other words, the model predicts that it will not be possible to form and maintain a cartel.What is the flaw in the prisoners' dilemma model; what is different from the model in an oligopoly market structure that could enable a cartel to form and persist?
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