What happens when the prisoners' dilemma game is repeated numerous times in an oligopoly market? (i)
The firms may well reach the monopoly outcome.(ii)
The firms may well reach the competitive outcome.(iii)
Buyers of the oligopolists' product will likely be worse off as a result.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

When the prisoners' dilemma is repeated, firms may learn to cooperate and reach the monopoly outcome, leading to higher prices, which makes buyers worse off.

What Happens When the Prisoners' Dilemma Game Is Repeated Numerous