Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games.
B. are always needed to reach a mutually beneficial equilibrium in single-round games.
C. usually fail to work.
D. are not observed in reality.
A. are not necessary to reach a mutually beneficial equilibrium in repeated games.
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Country 1 produces two goods, A and B. Country 2 produces the same two goods. Currently, country 1 produces 100A and 200B and country 2 produces 300A and 700B. Which of the following statements is true?
A) If country 1 is on its production possibilities frontier, then country 2 must be on its PPF, too. B) The PPF for country 1 is necessarily closer to the origin (or further to the left) than the PPF for country 2. C) If country 1 is productive inefficient, then so is country 2. D) Country 2 is operating on its PPF, but country 1 is clearly not operating on its PPF. E) none of the above
The value of the market to society is
A. the sum of the producer and consumer surpluses. B. the consumer surplus it generates. C. the producer surplus it generates. D. consumer surplus minus producer surplus.