When a Firm Cooperates If the Other Cooperates,but Plays the Nash

question 38

Multiple Choice

When a firm cooperates if the other cooperates,but plays the Nash equilibrium strategy forever if the other cheats,the strategy is a

• A)dominant strategy.
• B)trigger strategy.
• C)tit-for-tat strategy.
• D)wimp's strategy.
• E)cooperative strategy.

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Definitions:

Personal Factors

Individual attributes such as personality, beliefs, and experiences that influence one's behavior and perceptions.

Peter Principle

A theory suggesting that people are promoted to their level of incompetence in a hierarchical organization.

Primacy Effect

The tendency to remember and give greater importance to information that is encountered first in a sequence.

Self-Serving Bias

A common cognitive bias where individuals attribute positive events to their own character but attribute negative events to external factors.