If a Game Is Repeated Over and Over Again, Firms

question 10

Multiple Choice

If a game is repeated over and over again, firms have a greater incentive to cooperate because

• A)there is nothing to gain from not cooperating each time the game is played.
• B)each makes its highest possible profit every time the game is played.
• C)reputations can be made and there is much to gain in the long run.
• D)neither has anything to gain from not cooperating.
• E)they have too much information about the rival firm.

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Definitions:

Reliability

The extent to which a measurement instrument yields reliable and uniform outcomes across different occasions.

Generativity

The concern in establishing and guiding the next generation, often expressed through parenting, mentoring, or contributing to society in a meaningful way.

Creative Thinkers

Individuals who have the ability to look at problems or situations from a fresh perspective, leading to unorthodox solutions or innovations.

Fewer Mistakes

A term that refers to making less errors or inaccuracies in a process or activity.