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Repeated Games
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Problem 10
Repeated Games
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14. Oligopoly / Repeated Games / Problem 5
Problem 5
How do tit for tat and trigger strategies differ in their approach to maintaining cooperation?
A
Both strategies encourage immediate cheating.
B
Tit for tat allows for retaliation based on previous actions, while trigger strategy enforces permanent retaliation after one cheat.
C
Tit for tat discourages cooperation, while trigger strategy encourages it.
D
Both strategies result in permanent cooperation.
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