Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don't cooperate (cheat) and act like duopolists. Their profits are as follows:
If both cooperate: both receive $1 million
If one cooperates: cooperator receives $200,000, cheater receives $1.2 million
If both cheat: both receive $500,000
What will they do?

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The Answer of Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don't cooperate (cheat) and act like duopolists. Their profits are as follows:
If both cooperate: both receive $1 million
If one cooperates: cooperator receives $200,000, cheater receives $1.2 million
If both cheat: both receive $500,000
What will they do?

Joe and Steve Are Duopolists Who Each Can Follow Two