a) Is the pricing decision facing Alpha and Beta a prisoners' dilemma? Why or why not?
b) What is the cooperative outcome? What is the non-cooperative outcome?
c) If Alpha and Beta make their pricing decision just one time, will they choose the cooperative outcome? Why or why not?
d) Can Alpha make a credible threat to punish Beta with a retaliatory price cut? Can Beta make a credible threat of a retaliatory price cut?