Question: Consider the following information for a simultaneous move, infinitely repeated game: If you and your rival each charge a low price, you each will earn
Consider the following information for a simultaneous move, infinitely repeated game:
If you and your rival each charge a low price, you each will earn $ million in profits. You will each earn $ million in profits if you each charge a high price. However, if one of you charges a low price and the other charges a high price, the firm that charges a low price will earn $ million and the firm that charges a high price will earn $ million. The onetime benefit of cheating on the cooperative agreement is:
Select one:
$ million
$ million
$ million
$ million
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