A gaming strategy in which one player states that he/she would break the agreement for eternity if his/her co-player breaks the agreement once is called:

a. a grim trigger.
b. a credible threat.
c. a chain-store paradox.
d. a dominance pull.

A

Economics

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Enterprises obey horizontal orders if the reward from the vertical transaction exceeds the reward from the horizontal transaction

a. True b. False

Economics

In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:

A. the brain drain. B. human capital. C. certification. D. credentialism.

Economics