It Is Easier to Sustain Tacit Collusion in an Infinitely

question 17

Multiple Choice

It is easier to sustain tacit collusion in an infinitely repeated game if:

• A) the present value of cheating is lower than collusion.
• B) there are many players.
• C) the interest rate is higher.
• D) the present value of cheating is lower than collusion and the interest rate is higher.

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, aiming at increasing or decreasing certain behaviors.

Conditioned Response

A learned reaction to a previously neutral stimulus after repeated association with an unconditioned stimulus.

Stomach Flu

A non-medical term for various viral infections that affect the stomach and intestinal tract, leading to symptoms like nausea, vomiting, and diarrhea.

Reinforcement

In behavioral psychology, a concept referring to any process that increases the likelihood of a particular response or behavior by providing a reward.