Collusion Is More Likely to Occur When

question 29

Multiple Choice

Collusion is more likely to occur when

• A) there is fear of punishment for not colluding.
• B) there is a known finite time horizon.
• C) there are large gains to be made by cheating on an agreement.
• D) the game lasts only one period.

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Definitions:

Franchisors

Companies or individuals that allow an entrepreneur to license their business model and brand for a franchisee to operate under.

Lawyer

A specialist authorized to provide legal counsel or act on behalf of others in court cases.

Franchising Systems

Business models where a brand allows individual proprietors to use its trademarks and methods in exchange for a fee and adherence to brand standards.

Differ

To be unlike or distinct in nature, form, or characteristics.