McKinsey: “[That] the (tit-for-tat) strategy is fraught with risk cannot be overemphasized. Your competitor may take an inordinately long time to realize that its actions can do it nothing but harm; rivalry across the entire industry may escalate precipitously; and as the tit-for-tat game plays itself out, all of a price war’s detrimental effects on customers will make themselves felt.”

What properties of a cooperative pricing strategy could reduce the probability of a price war?