Explain why collusion is unstable in the one-period Cournot model but may be sustainable in the repeated

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Explain why collusion is unstable in the one-period Cournot model but may be sustainable in the repeated Cournot model, i.e., in which firms interact over several periods.

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 08, 2024 01:37 AM

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Explain why collusion is unstable in the one-period Cournot model but may be sustainable in the repeated

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In a oneperiod Cournot model collusion firms agreeing to restrict output and share the market is unstable because of the incentive for individual firm... View the full answer

Microeconomics An Intuitive Approach with Calculus

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