Forcing Cooperation in a Prisoner’s Dilemma
How to Force Cooperation in a Prisoner’s Dilemma?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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How to Force Cooperation in a Prisoner’s Dilemma?
The way out of a prisoner’s dilemma is to find a way to penalize those who do not cooperate.
Perhaps the easiest approach for colluding oligopolists, as you might imagine, would be to sign a contract with each other that they will hold output low and keep prices high.
Related Topics
- Market Structure
- Perfect Competition
- Bidding War
- Complements & Substitutes
- Substitution Effect
- Imperfect Competition
- Market Power
- Price Takers
- Price Makers
- Perfect Competition and Decision Making
- X-Efficiency
- Captive Market
- Contestable Market Theory
- Highest Profit Point in a Perfectly Competitive Market
- Marginal Revenue
- Using Marginal Revenue and Marginal Costs to Maximize Profit
- Marginal Revenue Curve
- Profit Margin and Average Total Cost
- Break Even Point - Cost Curve
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- Short-Run Decisions Based Upon Costs in a Perfectly Competitive Market
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- Constant, Increasing, and Decreasing Cost Industries
- Productive and Allocative Efficiency in Perfectly Competitive Markets
- Market Efficiency
- Market Inefficiency
- Pareto Efficiency
- Market Failure
- Search Theory
- Monopoly
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- Legal Monopoly
- Bilateral Monopoly
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- Predatory Pricing
- How Monopolists Set Price with the Demand Curve
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- Marginal Revenue and Marginal Cost for a Monopolist
- Inefficiency of Monopoly
- Perfectly Competitive Market
- Monopolistic Competition
- Duopoly
- Oligopoly
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- Prisoner's Dilemma
- Iterated Prisoner's Dilemma
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- Trembling Hand Perfect Equilibrium
- Gambler's Fallacy
- Arrows Impossibility Theorem
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