When there's uncertainty as to the length of a game,
A)cooperation still does not occur, because cooperation unravels at the beginning of the game.
B)cooperation can potentially occur if trigger strategies are adopted.
C)firms will cooperate because they treat the game as one that is infinitely repeated.
D)firms will randomly pick among the Nash equilibria.

Question

Quizplus · Accepted Answer

When there's uncertainty about the length of a game, cooperation can potentially occur if the firms adopt trigger strategies, where cooperation is maintained as long as both sides continue to cooperate, but if one side defects, the other side retaliates by also defecting for the rest of the game. This can help overcome the uncertainty and lead to a cooperative outcome.

When There's Uncertainty as to the Length of a Game