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Business, 20.03.2020 05:07 mxddisonxo

Suppose the two stores are in a repeated relationship, trying to sustain the joint profit-maximizing price calculated in part (c) above. They print new menus each month and thereby commit themselves to prices for the whole month. In any one month, one of them can defect from the agreement, and the other firm will be unable to react until the following month.

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