A commitment strategy is an agreement in which players agree to:
A. submit to a penalty in the future if they defect from a given strategy.
B. cooperate before the game begins.
C. cooperate in repeated games until someone defects.
D. None of these is a definition of a commitment strategy.
A. submit to a penalty in the future if they defect from a given strategy.
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Which type of occupation earned the lowest average wage in 2016?
A) management B) legal C) business and finance D) sales E) food preparation and serving
All of the following involve a moral hazard problem EXCEPT
A) an individual driving carelessly after buying a comprehensive insurance policy for a Ford Pinto. B) the IMF bailing Mexico out of a financial crisis, with promises to do the same for other nations that might face financial problems. C) making regular visits to your doctor because you know that you have full healthcare coverage. D) the requirement of banking institutions that owners invest a substantial portion of their own capital in their bank. E) membership in FDIC (Federal Deposit Insurance Corporation) by your local bank.