To understand the pressures and temptations on member firms in an oligopoly, economists have applied the game theory scenario of the ___________________, in which the gains from cooperation are larger than the rewards from pursuing self-interest.
a. Prisoner’s Dilemma
b. Traveler’s Dilemma
c. Platonia Dilemma
d. Volunteer’s Dilemma
a. Prisoner’s Dilemma
The Prisoner’s Dilemma is a scenario in which the gains from cooperation are larger than the rewards from pursuing self-interest, but the decision must be made without knowing what the other(s) will do. It applies well to oligopoly.
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A) Central African Republic B) Mexico C) France D) Argentina
Overseeing who operates banks and how they are operated is called
A) prudential supervision. B) hazard insurance. C) regulatory interference. D) loan loss reserves.
The elasticity of any demand curve is the same as its slope
a. True b. False Indicate whether the statement is true or false
In the circular flow model, there is a money flow of economic resources and finished goods and services and a real flow of income and consumption expenditures.
Answer the following statement true (T) or false (F)