For a game theory question, I get the answer "A 10% probability of bankruptcy translates into a 90% probability that the game continues, so p = 0.9. Then, for r = 0.25 (d = 0.8), R = 39%. This rate would need to exceed 7/8 before cheating was worthwhile, so the firms will still cooperate in this case. For a 35% probability of bankruptcy, p = 0.65 and R = 92%, so if bankruptcy becomes more certain, cheating becomes worthwhile."