Repeated market interaction,particularly when there is no end to the interaction in sight,can
A)change the dominant strategic equilibrium.
B)not change the dominant strategic equilibrium.
C)only change the equilibrium if the first mover changes.
D)result in a mixed,secure strategy.

Question

Quizplus · Accepted Answer

Repeated market interaction can lead to changes in the dominant strategic equilibrium if one or both players adjust their strategies over time based on their experiences and outcomes. This can result in a shift towards a new equilibrium or a mixed strategy, depending on the specific circumstances. Option B is not always true as changes can occur over time. Option C is not necessarily true as both players have the ability to adjust their strategies in repeated interactions. Option D is too vague and does not accurately reflect the potential outcomes of repeated market interaction.

Repeated Market Interaction,particularly When There Is No End to the Interaction