Which of the following statements is not correct about the prisoners' dilemma game played by a duopoly?

a. Both firms have a dominant strategy.
b. The Nash equilibrium shows the highest profit for both firms.
c. The cooperative outcome is inefficient, like the monopoly outcome.
d. If the firms play repeatedly, cooperation becomes more likely.

Respuesta :

It’s d the answer is D because I got the same question and I got it correct

The statements is not correct about the prisoners' dilemma game played by a duopoly d. If the firms play repeatedly, cooperation becomes more likely.

What does prisoner's dilemma have to do with oligopoly?

The prisoner's dilemma is an example of the application of game theory to analysis of oligopoly. It shows how, in certain situations, all sides can benefit from cooperative behavior rather than self-interested behavior. However, the challenge for the parties is to find ways to encourage cooperative behavior.

What is prisoner's dilemma example?

The U.S. debt deadlock between the Democrats and Republicans that springs up from time to time is a classic example of a prisoner's dilemma. Let's say the utility or benefit of resolving the U.S. debt issue would be electoral gains for the parties in the next election.

To learn more about the prisoners' dilemma, refer

https://brainly.com/question/11980505

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