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If a Prisoner's Dilemma Game Is Repeated Daily, Such That

Question 118

Multiple Choice

If a prisoner's dilemma game is repeated daily, such that two rival stores choose a price simultaneously each morning for an extended number of days, which outcome can happen?


A) The Nash equilibrium will continue to be played throughout the game.
B) The Nash equilibrium will continue to be played only until one firm engages a trigger strategy against the other.
C) There will more likely be cooperation to achieve an outcome different from the Nash equilibrium that is better for both firms.
D) An outcome different from the Nash equilibrium would occur; however, only one firm will be better off.

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