The Principle of Backward Induction Proves That in Price-Fixing Oligopoly

question 13

Multiple Choice

The principle of backward induction proves that in price-fixing oligopoly games:

• A)the players honor the agreement if the game is repeated.
• B)the players honor the agreement if the game is played five times.
• C)the players dishonor the agreement if the game is not played more than twice.
• D)the players dishonor the agreement if the game is repeated a number of times, as determined prior to the start of play.

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Definitions:

Competing Style

A conflict resolution approach where one puts their own interests above everyone else's to win.

Assertiveness

Involves expressing one's thoughts, feelings, and beliefs in a direct, honest, and appropriate way that respects the rights of others.

Cooperative Responses

Reactions or behaviors that involve working together towards a common goal or solving a problem collectively.

Managing Conflict

The process of identifying and addressing differences that have the potential to disrupt harmony and productivity in an organization or relationship.