The prisoners' dilemma shows that the players' dominant strategies often lead them to less than optimal outcomes. Is there any way in which this will not be the case?
What will be an ideal response?
Yes. If the game is played over and over, firms (or individuals) may learn from one another. If the player uses a tit-for-tat strategy, an optimal outcome can be achieved.
Economics
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A tornado siren is a
a. private good. b. club good. c. common resource. d. public good.
Economics
When real interest rates fall in the United States relative to interest rates in Japan, the yen appreciates and the dollar depreciates
Indicate whether the statement is true or false
Economics