Answer the following statements true (T) or false (F)

1) Most games that managers face are one-shot games.
2) Managers of firms in a finitely repeated pricing game who want to engage in tacit collusion should consider methods to create a chance that the game will continue beyond the final period.
3) The credibility of an announcement by a firm's rival depends on how closely the firm's interests align with its rival.
4) If the manager of Propane R US wants to enhance the credibility of a threat it made to its rival firms, the managers of Propane R Us should keep their rivals in the dark about their planned actions.
5) It is optimal for a manager to make unpredictable decisions when a rival firm can benefit at the expense of the manager's decisions.


1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) TRUE

Economics

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Economics