In a "Standard War

question 15

Multiple Choice

In a "standard war":

• A) there are two good equilibria, but the players differ over which equilibrium is the best.
• B) there is only one good equilibrium, but players get locked into the "bad" equilibrium.
• C) the Nash equilibrium always dominates.
• D) both players would prefer to have no standard.

---

Definitions:

Potential Lender

An individual or institution considering the provision of credit or loans to borrowers under specific conditions.

Department of Commerce

A division of a government that is concerned with promoting economic growth, trade, and market regulations.

Factoring

The practice of raising funds for a business through the sale of accounts receivable.

Finance Company

A business that provides loans to individuals or other companies, typically specializing in sectors like consumer finance, vehicle financing, or business loans.