Comment by kzbao
10 hours ago
I would argue the opposite in terms of inevitability. I see this like Prisoner's dilemma - even though there is technically a better outcome by cooperating, knowing that, it is in the individual firm's self-interest to not cooperate and thus we end up at the equilibrium where nobody does. Especially with IPOs around the corner, I feel there's too much pressure (and money) not to go with this strategy.
It is more like a Stag Hunt than a Prisoner's Dilemma, because past a certain point if the risks are real, defection can cause catastrophic outcomes for all players including the defecting one. On the other hand, cooperation could lead to positive outcomes (abundance) for all. So cooperation is a possible equilibrium here.