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Business, 06.06.2020 16:59 CBSEATON18
In a repeated game, how does the outcome differ if firms know that the game will be (a) repeated indefinitely, (b) repeated a known, finite number of times, and (c) repeated a finite number of times but the firms are unsure as to which period will be the last? Consider a game where the Nash equilibrium in a one-period static game is not the cooperative outcome (with collusion). If the game is repeated indefinitely, then A. cooperation cannot be achieved because the game has no payoffs. B. cooperation can be achieved because the firms move sequentially. C. cooperation cannot be achieved because threats are credible. D. cooperation can be achieved with signaling. E. cooperation cannot be achieved because of punishments for cheating.
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