A self-enforcing agreement:
A. describes an agreement in which every party involved has an incentive to abide by it, assuming that others do the same.
B. requires a contract.
C. describes the strategy that makes up a Nash equilibrium.
D. describes the strategy that makes up a Nash equilibrium and describes an agreement in which every party involved has an incentive to abide by it, assuming that others do the same.
D. describes the strategy that makes up a Nash equilibrium and describes an agreement in which every party involved has an incentive to abide by it, assuming that others do the same.
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IBM went to the trouble of adding five separate microchips to its F-series printers to slow them down and sell them as E-series printers for a lower price
How could any firm justify adding extra costs to production for a good that will carry a lower price tag?
A decrease in the marginal factor cost of labor will
A) lead to an decrease in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) induce a firm to hire more workers. D) cause the value of the marginal product of labor to decrease.
The better the information provided to financial markets the:
A. greater will be the flow of funds in these markets. B. greater the amount of funds transferred between savers and borrowers, though risk increases. C. higher the return required by lenders. D. less the amount of funds transferred between savers and borrowers.
Why are government welfare programs often called entitlement programs?
A. Because every U.S. citizen, regardless of income, is entitled to receive benefits under these programs. B. Because everyone living in the U.S., whether the person is a citizen or not, is entitled to a minimum level of income. C. Because those who fail a means test are eligible for cash assistance but not in-kind transfers. D. Because people whose income is below a certain level are entitled to government assistance.