(Table: Lemonade) Andrei and Sonya Operate Lemonade Stands in the Same

question 142

Multiple Choice

(Table: Lemonade) Andrei and Sonya operate lemonade stands in the same neighborhood. Payoffs are in quarters . The kids have formed an agreement to restrict output. They are playing an infinitely repeated game in which output decisions must be made every period and both of them are using tit-for-tat trigger strategies. If the discount rate is d = 0.33, then the players ____.

• A) prefer to collude rather than not to collude
• B) prefer not to collude rather than to collude
• C) are indifferent between colluding and not colluding
• D) Not enough information is given in the problem to determine preference for collusion.

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Definitions:

Walmart

An American multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores.

Amazon

A multinational technology company primarily known for its e-commerce platform, along with its ventures in cloud computing, digital streaming, and artificial intelligence.

Subway Restaurants

A multinational fast-food chain known for its submarine sandwiches and salads, operating a large number of outlets globally.

Sandwiches

A food item typically consisting of vegetables, cheese, meat, or other fillings placed between slices of bread.