We present a two-firm model of predation under complete information, based on different discount factors, and integrate it with a model of collusion. Competition, collusion and predation are seen as alternative strategies. The basic conclusions are that there is predation when one firm has a high discount factor and the other one has a low discount factor, there is competition when both firms have low discount factors, and when both firms have high discount factors, equilibria are multiple and the game may become a war of attrition. Collusion can be sustained as a Nash equilibrium in some cases, but the required discount factors have a lower bound and an upper bound.
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