Games that are played more than once generally
A)lead to outcomes dominated purely by self-interest.
B)lead to outcomes that do not reflect joint rationality.
C)encourage cheating on cartel production quotas.
D)make collusive arrangements easier to enforce.

Question

Quizplus · Accepted Answer

Games that are played repeatedly allow for the establishment of trust and lead to the potential for collusive arrangements to be made and enforced. This is because players have the opportunity to observe each other's behavior over time and punish defections from the collusive agreement. Therefore, repeated games make collusive arrangements easier to enforce, making choice D the best answer.

Games That Are Played More Than Once Generally