For collusion to make sense, the payoff matrix must be a
A)positive-sum game.
B)zero-sum game.
C)negative-sum game.
D)negative-positive-sum game.

Question

Quizplus · Accepted Answer

Collusion makes sense in a positive-sum game because it implies that by cooperating, the involved parties can achieve outcomes where the sum of their gains is greater than the sum of their individual efforts if they were competing, thus creating a situation where everyone benefits from the collusion.

For Collusion to Make Sense, the Payoff Matrix Must Be