If a duopolists' collusive price- fixing game can be played repeatedly,
A) players can punish cheaters in the following game.
B) one possible equilibrium is that both firms cheat.
C) players can signal their willingness to cooperate.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

In a repeated duopolists' collusive price-fixing game, players can indeed punish cheaters in subsequent games, signal their willingness to cooperate, and potentially reach an equilibrium where both firms cheat, making all the options correct.

If a Duopolists' Collusive Price- Fixing Game Can Be Played