The Difference Between a Repeated Game and One That Is

question 92

Multiple Choice

The difference between a repeated game and one that is played only once is that

• A)fewer firms exist in a one-time game.
• B)more information is available in the repeated game.
• C)firms have different reasons for existing.
• D)the payoffs per period of time are different.
• E)firms act out of their own self-interest only in a one-time game.

---

Definitions:

Accrual Accounting

A method in accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the initial investment in a project.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Accrual Return

The return on investment that is recognized in financial statements before any cash changes hands.