Suppose we observe that the outcome of the game is one in wh…
Suppose we observe that the outcome of the game is one in which each company earns a profit of $10 million. This outcome is the result of cooperation between the two companies, and we know that a cooperative outcome is easy in a game such as this one is the result of cooperation between the two companies, and we know that a cooperative outcome is difficult in a game such as this one is the most likely outcome of the game, regardless of whether the two companies cooperate is the result of each company pursuing its dominant strategy