We went through the 2×2 game format of the classic Prisoner’s Dilemma, in our case applied to price wars or “Bertrand Competition”
Why aren’t price wars omnipresent? We focused on conditions in which they shouldn’t be observed, or should be limited in scope
quantities not flexible: that’s our previous analysis, in which the equilibrium outcome is that both firms in our symmetric duopoly make positive profits, but less than if they were a cartel setting monopoly prices
one firm has much lower costs, where there’s no need to cut prices much / the other firm has no incentive to cut prices