What is a repeated game? Hoe does this helps the players in a game?
A repeated game is one that is played over and over again a number 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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Suppose you paid $500,000 for an asset. You hold the asset for five years. The interest rate that you get for the asset is 10%. Assume the tax rate on capital gains is 20%.
(A) If capital gains are taxed only when the asset is realized, how much will you have earned on the asset? (B) Suppose that capital gains are taxed annually instead of at realization. How much will you have earned on the asset? (C) How big is the difference in the two taxing schemes?
The value of life is calculated by comparing
A. average wages to the average retirement age. B. wages to the number of children in a worker's household. C. risk levels to the number of children in a worker's household. D. wages to risk levels. E. average life expectancy by occupation to average risk levels by industry.
How does the tax code contribute to rising health care costs?
A. Since the tax code provides exemptions for research and development, it provides an incentive for businesses to develop high-tech and expensive new treatments. B. Since services are not subject to state sales taxes, households tend to spend more of their money on health care services than on other goods. C. Since health care purchases are subject to such high taxes, total spending on health care (including taxes) is quite high. D. Since health insurance benefits are untaxed, workers have an incentive to receive more of their compensation in the form of health insurance benefits.
If the price elasticity of supply of a good is? 2, a 200 percent increase in the price of the good will change the quantity supplied by? ________.
A. 400 percent B. 200 percent C. 100 percent D. 50 percent