Collusion is more successful in a game that will continue forever or in a game with an uncertain ending time, than in a game with a known ending time
Indicate whether the statement is true or false
True . In games with a known final period players will cheat in the final period. This is true because the final period becomes a single period game. By the same reasoning, players will cheat in the period prior to the last period, etc. Thus, when players know the last period, they are more likely to cheat in each period.
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The quantity demanded is
A) always equal to the equilibrium quantity. B) independent of the price of the good. C) the amount of a good that consumers plan to purchase at a particular price. D) independent of consumers' buying plans.
An increase in the price of ice cream is likely to cause:
A. a movement to the left along the demand curve for ice cream. B. an inward shift of the demand curve for ice cream. C. an outward shift of the demand curve for ice cream. D. a movement to the right along the demand curve for ice cream.
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item is common across bidders
The expression "gains from trade" refers to:
A) the net benefits a country receives from trade. B) a nation's surplus of exports over imports. C) a nation's balance of trade. D) the benefits a country receives from quota protection.