Which of the Following Is True of Repeated Negotiations Between

Multiple Choice

Which of the following is true of repeated negotiations between two firms?

A) In a repeated negotiation the bargaining behavior of the firms is motivated solely by the immediate profit available from an agreement.
B) The reputation of a firm does not play a significant role in repeated negotiations.
C) Repeated negotiations enhance the scope for purely opportunistic behavior by firms.
D) The firm with a weaker bargaining power is in a position to receive a greater share of the profit in repeated negotiation.
E) In repeated negotiation firms have obvious incentives to maintain a cooperative relationship.