The noncooperative equilibrium of a prisoners' dilemma kind of game can be avoided if the game is played repeatedly and firms engage in strategic behavior.False

Question

Quizplus · Accepted Answer

If firms engage in repeated play and strategic behavior, they may still end up in a noncooperative equilibrium of the prisoners' dilemma game. However, they may have incentives to cooperate in order to achieve higher payoffs in the long run.

The Noncooperative Equilibrium of a Prisoners' Dilemma Kind of Game