If everyone has a dominant strategy in a simultaneous move game, then the action that is played by that strategy is played in all stages of any finitely repeated version of that game in any subgame perfect equilibrium.
Answer the following statement true (T) or false (F)
True
Rationale: In the last stage, everyone simply plays the dominant strategy Nash equilibrium -- which means there is no reason not to do the same in the second to last stage and so forth.
Economics
You might also like to view...
A fixed exchange rate is:
a) set by the government. b) also called a floating exchange rate. c) determined in international currency exchange markets. d) set equal to the prime rate.
Economics
Refer to Table 9-11. Which country has an absolute advantage in producing hats?
A) Belize B) Denmark C) both countries D) neither country
Economics