This prisoner's dilemma game shows the payoffs associated with two firms,A and B,in an oligopoly and their choices to either collude with one another or not.
Given the situation in the matrix shown,the two firms are likely to collude only if:

Question

This prisoner's dilemma game shows the payoffs associated with two firms,A and B,in an oligopoly and their choices to either collude with one another or not. 
Given the situation in the matrix shown,the two firms are likely to collude only if:

Quizplus · Accepted Answer

In a repeated game, both firms have the opportunity to gain from a cooperative strategy because they are playing the game multiple times. By colluding and agreeing to not undercut each other's prices, they can both earn higher profits in the long run. Therefore, A is the most likely choice for the firms to collude.

This Prisoner's Dilemma Game Shows the Payoffs Associated with Two