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

Question

Quizplus · Accepted Answer

In a repeated game, firms can signal cooperation, punish cheaters, and one possible equilibrium is mutual cheating.

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