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Business, 25.03.2021 21:20 sukhmanksidhu

Refer to the normal-form game of price competition in the payoff matrix below. Suppose this one-shot game is repeated for infinite times. Both firms agree to charge a high price, provided no player has charged a low price in the past. As long as one firm deviated in the past, they charge a low price. What is the lowest discount factor that can sustain this trigger strategy

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Refer to the normal-form game of price competition in the payoff matrix below. Suppose this one-shot...
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