In repeated games, all of the following allow a firm to escape an inefficient "prisoners dilemma" equilibrium except
a. Be nice, don't strike first
b. Respond immediately to non-cooperation
c. Punish competitors as much as you can
d. Make sure your competitors can easily interpret your actions
c
You might also like to view...
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
The payoffs of this game are such that:
A. both firms would benefit from a law that made publishing coupons illegal. B. an agreement not to publish coupons would be easy to maintain because neither firm has an incentive to defect. C. profit at each firm is higher when they both follow their dominant strategy than when they both follow their dominated strategy. D. if Row Restaurant expects Column Cafe to choose its dominant strategy, then Row Restaurant should choose its dominated strategy.
A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the
A) Federal Reserve System. B) World Bank. C) International Monetary Fund. D) International World Fund.
Refer to the figure below.
If a price ceiling were imposed at point G, then producer surplus would be represented by the area ________.
A. DBC B. 0GFQ2 C. DGF D. 0DFQ2
The principle of comparative advantage indicates that mutually beneficial international trade can take place only when
A. transportation costs are almost zero. B. tariffs are eliminated. C. a country can produce more of some product than other nations can. D. relative costs of production differ between nations.