Prices of PlayStation 5 game systems are similar at almost every large retailer and little price competition occurs among these retailers. An explanation for this is

Question

Quizplus · Accepted Answer

C) This scenario is best explained by the concept of a repeated game, where over time, retailers have found a cooperative equilibrium that benefits them by maintaining high prices for PlayStation 5 game systems. This does not necessarily involve formal collusion or legal lobbying but is a result of repeated interactions and an understanding of mutual benefit from maintaining certain price levels.

Prices of PlayStation 5 Game Systems Are Similar at Almost