1: Unlike a one-shot game, in a repeated game: A) players have the opportunity t
ID: 1118582 • Letter: 1
Question
1: Unlike a one-shot game, in a repeated game:
A) players have the opportunity to use mixed strategies
B) each player's objective is to claim a greater payoff with the first move
C) players have the opportunity to build trust and cooperation
D) a player's prior requtation carries relatively little importance
E) players are obligated to take independent actions
2: Two firms are poised to enter a retail market. Entering the market will be profitable for one firm only if the other firm does not enter the market. This is an example of:
A) perisoner's dilemma
B) a repeated game with contingent strategies
C) bargaining game with multiple equilibria
D) a game with a first moveer advantage
E) a zero-sum game
Explanation / Answer
1> C) players have the opportunity to build trust and cooperation
Reason
Players can build co-operation by using the punishment strategy if the desired option is not played. Thus, it incentivizes players to co-operate.
2> D) a game with a first moveer advantage
Reason
Whoever gains the market first can gain from the market but if the other player enters, they will only make losses.