To trust a potential cooperator until the first defection and then never cooperate thereafter is
a. a dominant strategy
b. an irrational strategy
c. a grim trigger strategy
d. a non-cooperative finite game strategy
e. a subgame imperfect strategy
c
You might also like to view...
Which of the components of total planned autonomous spending has a negative multiplier, and one which is lower in absolute value than the multiplier of the others?
A) autonomous consumption B) net taxes C) planned investment D) government expenditure E) net exports
The collapse of one bank might lead easily to the failure of several others, because ________
A) depositors cannot trust each other to keep their money in the bank B) deposit insurance renders all banks equally fragile C) no bank can survive when its competitors cease to operate D) government regulators will step in to punish any bank suspected of poor management
The marginal cost of an airline ticket is the total cost of flying the plane divided by the number of passengers
a. True b. False Indicate whether the statement is true or false
When choosing the right amount of a public good to supply, the government often:
A. provides too much, because people have an incentive to understate a good's value. B. fails to provide it, because people have an incentive to understate a good's value. C. provides too little, because people have an incentive to overstate a good's value. D. guesses, because people have an incentive to overstate a good's value.