Deviating is lower with the price protection plan in effect

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In its rivalry with Westinghouse, General Electric instituted a "price protection" plan. This plan stated that if GE lowered its price, it would rebate the price difference to its past customers. Show that this plan makes collusion between GE and Westinghouse easier.

Hint: GE's gain from deviating is lower with the price protection plan in effect.

Reference no: EM13853584

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