-When Duopoly Games Are Repeated and a 'Tit-For-Tat' Strategy Is

question 57

Multiple Choice

-When duopoly games are repeated and a 'tit-for-tat' strategy is used,

• A) one firm goes out of business.
• B) both firms begin to incur economic losses.
• C) the competitive outcome is more likely to be reached than when the game is played once.
• D) the monopoly outcome is more likely to be reached than when the game is played once.
• E) because the game is repeated it is impossible to predict whether the competitive or the monopoly outcome is more likely.

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Definitions:

Impulsiveness

The tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Inattention

The lack of focus or concentration on a task or environment.

Low Tolerance

A minimal level of patience or ability to endure something, especially discomfort, opposing opinions, or behaviors.

Inappropriate Activity

Actions or behaviors that are not suitable or proper in a given context or situation.