Question: Find the critical discount factor that makes free collusion dynamically sustainable For the following problem: Suppose that firms produce homogenous product, demand is q=720-2p, 0

Find the critical discount factor that makes free collusion dynamically sustainable For the following problem: Suppose that firms produce homogenous product, demand is q=720-2p, 0 TC. They play this game in a 2x2 matrix in repeated infinite rePetition. Firms use grim-trigger strategies to negotiate becoming a monopoly. If any defection from collusion occurs, they go back to their best response and Nash equb rises.

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