The dilemma in a prisoner's dilemma is that:
A. the players would be better off if they both played a dominated strategy.
B. only one player has a dominant strategy, but the other player is uncertain about what to do.
C. the outcome is random, so players are uncertain about which strategy to play.
D. the players may be trapped in a game they don't know how to play.
Answer: A
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At the time of the South Korean financial crisis, the merchant banks were
A) almost virtually unregulated. B) subject to heavy government regulation. C) engaged in long-term lending to the corporate sector. D) restricted to long-term foreign borrowing.
Why do economists test their hypotheses?
A) to see whether people are motivated by self-interest B) to see whether their models predict the choices people will make C) to determine whether government policies have effectively achieved their goals D) to learn what people are thinking when they make the choices they do
Suppose price increases from $9.00 to $11.00. Using the mid-point formula, the percentage change in price is:
A. 20% B. 25% C. 20% D. 2%
An organization producing a wide range of products is more likely to decentralize its decision making process than a firm operating in a single industry
Indicate whether the statement is true or false