A Strategy That Limits Defection in a Repeated Prisoner's Dilemma

question 49

Multiple Choice

A strategy that limits defection in a repeated prisoner's dilemma game is:

• A)a Nash equilibrium.
• B)tit-for-tat.
• C)a cartel.
• D)an ultimatum bargaining game.

---

Definitions:

Exercising The Option

The act of buying or selling the underlying asset via the option contract.

Employee Stock Option (ESO)

An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time.

European Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on the expiration date, unlike American options which can be exercised at any time before expiry.

European Options

Options that can only be exercised at the expiration date, not before.