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Economics

Assume the 3 firms compete for market share over an infinite time horizon. Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0 < X < 1. Show that there is an equilibrium where all three of the firms can collude with each other and obtain a higher average payoff over time than either one of them could individually in the game.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9167089

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