Another possibility in repeated oligopolists' dilemma is that the firms will undertake strategies that actually change the payoff matrix making the collusive agreement easier to maintain.

   To the right we show a typical oligopolists' dilemma. Under the right conditions the firms can establish a collusive agreement and earn average payoffs of 14 each. The temptation to cheat though is clear and the reward is a payoff of 18. In a recession this can be quite a temptation. Can the firms do anything reasonable to change the payoffs so that collusion becomes more stable?

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