Table 17-4 Consider Trade Relations Between Canada and Germany. Assume That the Assume

Multiple Choice

Table 17-4
Consider trade relations between Canada and Germany. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows:


-Refer to Table 17-4.Assume that trade negotiations are repeated each year.In a repeated game scenario,what would be the main difference of the game

A) Mexican negotiators will assume that Canadian negotiators will never retaliate for a noncooperative trade policy.
B) Both parties will assume that the other will choose a strategy that optimizes the total value of the trade relationship.
C) The Nash equilibrium will provide the largest possible gains to each party.
D) Each will follow a dominant strategy based entirely on self-interest.