Laurel and Jana are competitors in a local market and each is trying to decide if it is worthwhile to advertise.If both of them advertise,each will earn a profit of $5000.If neither of them advertises,each will earn a profit of $10,000.If one advertises and the other doesn't,then the one who advertises will earn a profit of $12,000 and the other will earn $2000.In this version of the prisoner's dilemma,if the game is played only once,what should Laurel do
And what should she do if the game is repeated many times
A)advertise, but if the game is to be repeated many times she should probably not advertise
B)advertise, and if the game is to be repeated many times she should still probably advertise
C)not advertise, but if the game is to be repeated many times she should probably advertise
D)not advertise, and if the game is to be repeated many times she should still not advertise

Question

Laurel and Jana are competitors in a local market and each is trying to decide if it is worthwhile to advertise.If both of them advertise,each will earn a profit of $5000.If neither of them advertises,each will earn a profit of $10,000.If one advertises and the other doesn't,then the one who advertises will earn a profit of $12,000 and the other will earn $2000.In this version of the prisoner's dilemma,if the game is played only once,what should Laurel do
 And what should she do if the game is repeated many times
A)advertise, but if the game is to be repeated many times she should probably not advertise
B)advertise, and if the game is to be repeated many times she should still probably advertise
C)not advertise, but if the game is to be repeated many times she should probably advertise
D)not advertise, and if the game is to be repeated many times she should still not advertise

Quizplus · Accepted Answer

In the one-time game, Laurel should advertise because it is her best option regardless of what Jana does. If Jana doesn't advertise, Laurel earns more by advertising. If Jana advertises, they both earn more by advertising. If Laurel doesn't advertise, she earns less in all scenarios. 
However, if the game is repeated many times, Laurel should probably not advertise because in the long run, it is possible for Jana to learn that cooperating (not advertising) leads to both of them earning more, and therefore both will make the same choice each time, resulting in both earning $10,000 instead of potentially $12,000 each if they both advertised.

Laurel and Jana Are Competitors in a Local Market and Each