The following depicts a normal-form game of price competition. What is the maximum interest rate that can sustain collusion?
A) 66.7 percent
B) 33 percent
C) 25 percent
D) 15 percent

Question

The following depicts a normal-form game of price competition.  What is the maximum interest rate that can sustain collusion?
A) 66.7 percent 
B) 33 percent 
C) 25 percent 
D) 15 percent

Quizplus · Accepted Answer

The Answer of The following depicts a normal-form game of price competition.  What is the maximum interest rate that can sustain collusion?
A) 66.7 percent 
B) 33 percent 
C) 25 percent 
D) 15 percent

The Following Depicts a Normal-Form Game of Price Competition