Why does a collusive agreement to restrict output and raise price create a game like the prisoners

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Why does a collusive agreement to restrict output and raise price create a game like the prisoners’ dilemma?

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Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

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Question Posted: Dec 15, 2015 07:22 AM

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What creates an incentive for firms in a collusive agreement to cheat and increase output?
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Why does a collusive agreement to restrict output and raise price create a game like the prisoners

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Each firm has the possibility of sharing monopoly profits wit...View the full answer

Microeconomics

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