A cartel can be formed as a tacit collusion when: none of the other answers are correct. firms strategically act in accordance with a grim trigger or carrot-stick strategy. they interact strategically in a finite temporal horizon. the discount factor of each firm is sufficiently small.

A cartel can be formed as a tacit collusion when: none of the other answers are correct. firms strategically act in accordance with a grim trigger or carrot-stick strategy. they interact strategically in a finite temporal horizon. the discount factor of each firm is sufficiently small.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 7MC

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A cartel can be formed as a tacit collusion when:
none of the other answers are correct.
firms strategically act in accordance with a grim trigger or carrot-stick strategy.
they interact strategically in a finite temporal horizon.
the discount factor of each firm is sufficiently small.

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