What is a repeated game? How does this helps the players in a game?
What will be an ideal response?
A repeated game is one that is played over and over again a number of times. They give all of the players the opportunity to learn something about each other’s behavior patterns and, perhaps, to arrive at mutually beneficial arrangements. In practice, this amounts to tacit collusion. The two competing firms never actually get together to reach a joint decision on product price and quality, behavior that is illegal. But they watch one another’s behavior in their repeated game, and each eventually learns to adapt itself and go along with the other’s behavior.
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Consider baseball games and ballpark hotdogs. A significant increase in the price of baseball game tickets would tend to
A) increase the demand for ballpark hotdogs. B) decrease the demand for baseball game tickets. C) decrease the demand for ballpark hotdogs. D) increase the demand for baseball game tickets.
Proponents of the real business cycle model argue that the short-run aggregate supply curve is
A) flat. B) negatively sloped. C) positively sloped. D) vertical.
If the demand curve is given by Q = a + bp, then b is
A) positive. B) the quantity demanded when price is zero. C) the change in quantity demanded if price changes by 1. D) different at different points on the demand curve.
Historical demand curves are always suspect because their demand curves are likely to have shifted over time
a. True b. False Indicate whether the statement is true or false