The Principle of Backward Induction Proves That in Price-Fixing Oligopoly

Multiple Choice

The principle of backward induction proves that in price-fixing oligopoly games:

A) the players honor the agreement if the game is repeated.
B) the players honor the agreement if the game is played five times.
C) the players dishonor the agreement if the game is not played more than twice.
D) the players dishonor the agreement if the game is repeated a number of times, as determined prior to the start of play.