Given an infinitely repeated, collusive oligopoly game, all but which of the following criteria should be met when devising a successful punishment strategy to be used in the event of another player's defection?
A)credible threats of punishment
B)negative pay- offs in the non- cooperative equilibrium
C)rapid detection of cheating by a rival
D)severe penalties imposed for cheating

Question

Quizplus · Accepted Answer

Negative pay-offs in the non-cooperative equilibrium are not a criterion for a successful punishment strategy in a collusive oligopoly. Successful punishment strategies rely on credible threats, rapid detection of cheating, and severe penalties to deter defection and maintain collusion, not on the outcomes of a non-cooperative equilibrium.

Given an Infinitely Repeated, Collusive Oligopoly Game, All but Which