Hence share the monopoly profit using trigger strategies

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Consider an infinitely repeated Cournot duopoly with discount factor ?<1, unit costs of c>0, and inverse demand functions p(Q)=a-bQ, with a>c and b>0. Find the condition on the discount factor ?, for which the two firms could successfully collude over the monopoly output and hence share the monopoly profit using trigger strategies

Reference no: EM13838667

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