In a Game That Can Be Repeated, the Optimal Solution

question 170

Multiple Choice

In a game that can be repeated, the optimal solution is

• A)dependent upon each firm's decision in the first round of decision making
• B)independent of the decisions that competitive firms made on the first round
• C)to maximize profits regardless of what competitors do
• D)to minimize costs regardless of what competitors do
• E)to select the solution that minimizes the potential losses from a decision

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Definitions:

Loss Aversion

The tendency to strongly prefer to avoid losses compared to attempting to acquire gains.

Hindsight Bias

The inclination to see events as having been predictable, after they have already occurred.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that affirms someone's already held beliefs or assumptions.

Selection Bias

A statistical bias in which there is an error in choosing the individuals or groups to participate in a study, leading to results that are not representative of the broader population.