Which special case term describes the situation where for sufficiently low discount rates,any price between the monopoly price and marginal cost can be sustained as an equilibrium in the infinitely repeated prisoner's dilemma game?
A)Collusive agreement
B)Centipede Game
C)Folk Theorem
D)War of Attrition
E)Focal Point

Question

Quizplus · Accepted Answer

This describes the Folk Theorem, where for sufficiently low discount rates, any price between the monopoly price and marginal cost can be sustained as an equilibrium in the infinitely repeated prisoner's dilemma game. The other terms do not accurately describe this situation.

Which Special Case Term Describes the Situation Where for Sufficiently