A collusive agreement between two duopolists is similar to the prisoners' dilemma because in both games
A) the best outcome is always achieved.
B) each players strategy depends on what the other player does.
C) the Nash equilibrium is not the best outcome for the players.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

In both the prisoners' dilemma and a collusive agreement between duopolists, the Nash equilibrium results in a suboptimal outcome for the players compared to what they could achieve if they cooperated.

A Collusive Agreement Between Two Duopolists Is Similar to the Prisoners