medium · CFA Level I Economics
Oakridge Capital and Meridian Pack are duopolists. The Nash equilibrium occurs at (Low Price, Low Price) with profits of (30, 30). The collusive outcome is (High Price, High Price) with profits of (50, 50).
If they both follow a 'Maximin' strategy, the outcome will be:
- (High Price, High Price)
- (High Price, Low Price)
- (Low Price, Low Price)
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