In an Infinitely Repeated Prisoner's Dilemma (Such as a Repeated

question 29

Multiple Choice

In an infinitely repeated prisoner's dilemma (such as a repeated price war) :

• A) repeated defection is the only equilibrium.
• B) there are two different equilibria: repeated defection and repeated cooperation.
• C) repeated cooperation is the only equilibrium.
• D) each player cooperates in the early stages, but defects near the end of the game.
• E) there is no stable equilibrium strategy for either player.

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Definitions:

Package Store

A retail store that sells bottled or packaged alcoholic beverages for consumption off the premises, commonly found in some regions of the United States.

Derived Demand

The demand for resources (inputs) that is dependent on the demand for the outputs those resources can be used to produce.

Inputs Demand

The desire or requirement for factors of production, like labor and capital, that businesses need to produce goods or services.

Demand for Outputs

The quantity of goods and services that consumers and businesses are willing and able to purchase at various prices during a certain period of time.