Question

In many oligopolistic industries, the same firms compete over a long period of time, setting prices and observing each other's behavior repeatedly. Given the large number of repetitions, why don't collusive outcomes typically result? Collusive outcomes are difficult to sustain in repeated games because O A. demand conditions often are static. O B. players often doubt that their opponents are perfectly rational. O C. successful collusion encourages entry O D. such games often continue indefinitely without end O E. players often do not know how long they will be competing.

Answer 1

Option D

Explanation: Such games often continue infinitely, which discourages collusive outcome to be sustainable.