Though Nash games are noncooperative,a cooperative outcome is more likely if

Question

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If firms expect the market relationship to last a long time, they are more likely to consider the long-term gains rather than just the short-term gains. This can lead to a more cooperative outcome in a noncooperative Nash game. In contrast, if firms expect the market relationship to last only for a short time, they may prioritize short-term gains and be less willing to cooperate. Therefore, option C is the best choice.

Though Nash Games Are Noncooperative,a Cooperative Outcome Is More Likely