In a Repeated Game, Deterring Entry

question 31

Multiple Choice

In a repeated game, deterring entry

• A)is not possible.
• B)is not a rational strategy if money is lost fighting the first potential entrant.
• C)may require losing money fighting the first potential entrant.
• D)cannot form a subgame perfect Nash equilibrium.

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Definitions:

FCFS

"First Come, First Served," a method of service in which requests are attended to in the order in which they are received.

Balking

The phenomenon where individuals in a queue decide not to enter the queue or leave before being serviced upon assessing the wait time to be too long.

Balking

The phenomenon where customers decide against entering a queue or a service line due to its length or waiting time.

Reneging

The act of going back on a promise, obligation, or deal.