In a repeated game,punishments that result in heavy damages are an incentive for players to adopt the strategies that result in a ________ equilibrium.
A)contestable
B)strategic
C)complementary
D)cooperative
E)satisfying

Question

Quizplus · Accepted Answer

Heavy punishments create the incentive for players to adopt cooperative strategies, as it becomes mutually beneficial for both players to cooperate in order to avoid the punishment. This leads to a cooperative equilibrium where both players benefit.

In a Repeated Game,punishments That Result in Heavy Damages Are