Which of the following is true?
A)In an infinitely repeated game, collusion is always a Nash equilibrium.
B)In a finitely repeated game with a certain end period, collusion is unlikely because effective punishments cannot be used during any time period.
C)All of the statements associated with this question are correct.
D)None of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In a finitely repeated game with a certain end period, collusion is unlikely because effective punishments cannot be used during any time period. In an infinitely repeated game, collusion might not always be a Nash equilibrium as the players have the chance to retaliate in future rounds if one player defects.

Which of the Following Is True