In Repeated Negotiations Between Two Firms

Multiple Choice

In repeated negotiations between two firms:

A) the bargaining behavior of the firms is motivated solely by the immediate profit available from an agreement.
B) the reputation of a firm does not play a significant role.
C) there is enhanced scope for purely opportunistic behavior by firms.
D) The firm with less bargaining power is positioned to receive a greater share of the profit.
E) firms have extra incentives to maintain a cooperative relationship.