Principles of Microeconomics / Unit 17 MIC 1630 short lesson, about 20 seconds
Oligopoly and Games, Restated
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The idea
A few firms, each watching the others. Collusion would reach the monopoly outcome, but each member gains by cheating: cheating is dominant, all cheating is the equilibrium, the cartel breaks. Repetition with tit-for-tat or trigger threats can hold it.
In practice
Both confess, both cheat, both expand: the same cell.
Where people slip
A Nash equilibrium is where nobody gains by changing alone, not the best cell.
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