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Suppose there are two wheat farmers, A and B. They supply the whole wheat market in their region and are in direct competition. Both farmers can either grow a lot of wheat or a little. The outcomes depend on the choices made by both:
If both farmers grow little wheat: They can sell their limited quantity at a higher price, resulting in a medium yield of 5
If both farmers grow a lot of wheat: There is an oversupply, causing the price to decrease. Consequently, each farmer receives a low yield of 3.
If one farmer grows a lot of wheat while the other grows little: The farmer with a high wheat supply ends up with a high yield of 10, the other farmer with a very low yield of 1.
To prevent collusion and maintain competition, the farmers have to exchange only one sentence per year. This sentence can be used to convey information on the planned amount of wheat-supply.
Additionally, the farmers have the option to delegate the decision-making process to ChatGPT. In this case, the artificial intelligence receives the sentence and on this basis determines the amount of wheat to be produced.
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