In a finitely repeated prisoners' dilemma game
A) firms will only cooperate if they each adopt a tit-for-tat strategy.
B) firms cooperate and achieve the collusive Nash equilibrium for all rounds.
C) firms cooperate for most of the rounds, but switch to the non-cooperative outcome in the final couple of rounds.
D) firms do not cooperate and the static game Nash equilibrium is the outcome for each round.
D
You might also like to view...
_______ ensure that resources are allocated to where they are most highly valued
a. Communist governments b. Consumers c. Suppliers d. Non-governmental organizations e. Markets
When the government tries to control pollution through cap and trade, it _____
a. issues permits that enables the owners of the permit to pollute b. allows polluting firms to produce public goods that reduce pollution c. levies tax on the polluting firm d. gives subsidies to the firms who adopt clean production technologies e. takes legal actions against the firms who pollute beyond the specified level