Q. Which of the following legal restrictions, if enforced effectively, would be likely to solve aprisoners’ dilemma type of problem for the firms involved? (Solved)
1. a law that prevents a cartel from enforcing rules against cheating
2. a law that makes it illegal for oligopolists to engage in collusion
3. a law that prohibits firms in an industry from advertising their services
4. all of the above would be likely to solve a prisoners\ dilemma for the firms
- c. a law that prohibits firms in an industry from advertising their services