Refer to the Normal-Form Game of Price Competition in the Payoff

question 106

Multiple Choice

Refer to the normal-form game of price competition in the payoff matrix below. Suppose the game is infinitely repeated, and the interest rate is 10 percent. Both firms agree to charge a high price, provided no player has charged a low price in the past. If both firms stick to this agreement, then the present value of firm A's payoffs are:

• A) 220.
• B) 110.
• C) 330.
• D) 550.

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Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and the promotion of secondary sexual characteristics.