Not all games with two or more Nash equilibria can be solved with pre-play communication because
A) cheap talk may be illegal under anti-trust laws.
B) if there's an incentive for one or more players to lie, then cheap talk lacks credibility.
C) pareto criterion might not be defined.
D) Both A and B
D
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The inflow of foreign investment into the U.S. economy reflects a high level of confidence in the United States.
Answer the following statement true (T) or false (F)
The type of security that is protected against inflation are:
A. Treasury bills. B. Treasury notes. C. Treasury bonds. D. TIPS.
Dave and Buster play two games of tennis, and then decide to go have lunch. Using the concept of utility to explain their choices, we can conclude that:
A. the marginal utility from playing a third game must be less than the marginal utility from having lunch. B. the marginal utility from playing a third game must be negative for them. C. they each won one game of tennis. D. All of these must be true.
The life insurance industry is an example of an industry with imperfect information.
Answer the following statement true (T) or false (F)