Oligopoly pricing.
w
95,
95
w
122,
57
w
57,
122
w
111,
111
P
B
= $130
P
A
= $130
P
B
= $105
P
A
= $105
Firm B
Firm A
w
Joint profit
maximization.
w
Incentive to
cheat on cartel.
w
Nash
equilibrium.