Which of the Following Is True of Repeated Negotiations Between

question 16

Multiple Choice

Which of the following is true of repeated negotiations between two firms?

• A)In a repeated negotiation the bargaining behavior of the firms is motivated solely by the immediate profit available from an agreement.
• B)The reputation of a firm does not play a significant role in repeated negotiations.
• C)Repeated negotiations enhance the scope for purely opportunistic behavior by firms.
• D)The firm with a weaker bargaining power is in a position to receive a greater share of the profit in repeated negotiation.
• E)In repeated negotiation firms have obvious incentives to maintain a cooperative relationship.

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