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Credible Promises and Hostage Mechanisms Can Support a Continuous Stream

Question 4

Multiple Choice

Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when


A) the promisor is better off fulfilling than ignoring his promise
B) neither party has a prior dominant strategy
C) the hostage can be revoked for just causes
D) the hostage is more valuable than any given exchange
E) the hostage is difficult to replace

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