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 preceding answers is 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 may or may not be a Nash equilibrium depending on the game's specific structure. Option A is incorrect as it is not always true, and Option C is incorrect as not all the statements are correct. Option D is also incorrect.

Which of the Following Is True