It is less likely for oligopolists to maintain high prices in a repeated game than when the firms must choose one strategy to follow for the entire lifetime of the firm.

Question

Quizplus · Accepted Answer

In a repeated game, oligopolists can use strategies like tit-for-tat to enforce cooperation and maintain high prices, whereas in a one-time game, there is less incentive to cooperate.

It Is Less Likely for Oligopolists to Maintain High Prices