Firms still have the incentive to cheat even after a game leads to cooperation.

Question

Quizplus · Accepted Answer

Even if a game leads to cooperation, firms still have the incentive to cheat in order to gain an advantage over their competitors. This is because cheating can increase profits in the short term, even if it damages long-term relationships with other players in the game. Therefore, firms must continue to monitor and enforce the rules of the game to prevent cheating and maintain cooperative behavior.

Firms Still Have the Incentive to Cheat Even After a Game