Economic and Game Theory
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with n ≥ 2 firms. The common discount factor is δ < 1, and the firms have constant marginal costs c. The market demand at time t is qt = µtD(pt), where µδ < 1 and pt is the lowest price charged.
Now, the question is how to derive the set of discount factors such that full collusion (sharing of the
monopoly profits) is sustainable as an equilibrium of the infinitely repeated game?
I'd appreciate your inputs.
Risclover [Manage messages]