In a Repeated Prisoners' Dilemma Decision,both Managers Can Make Credible

question 4

Multiple Choice

In a repeated prisoners' dilemma decision,both managers can make credible threats to punish cheating because

• A)if either manager cheats,the other manager can increase its profit by also cheating.
• B)both of the cheating cells in the payoff table are strategically stable cells.
• C)when both firms cheat,they both avoid the Nash equilibrium cell.
• D)both a and C

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Definitions:

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A wheeled motor vehicle used for transportation of people or goods on roads.