Multiple Choice
Suppose the game is infinitely repeated, and the interest rate is 5%.Both firms agree to charge a high price, provided no player has charged in low price in the past.If both firms stick to this agreement, then the present value of Firm B's payoffs are:
A) 105.
B) 190.
C) 210.
D) 525.
Correct Answer:
Verified
Correct Answer:
Verified
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