Competitors lower production to limit supply-increase price

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A firm suggests that they and their competitors (oligopoly) lower their production to limit supply and increase price (stating that it is because they are aggressively fighting for market share despite the implication for their country).

Thinking about the kind of game this is...would it be a Bertrand or Cournot; would it be finitely or infinitely repeated and would it be an example of tacit collusion? Would this have any implications for the entry/exist strategies into the market? What is a worked example of this?

Reference no: EM13837332

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