The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:
A)a finitely repeated game with known duration.
B)a finitely repeated game of unknown duration.
C)an infinitely repeated game.
D)none of these.

Question

Quizplus · Accepted Answer

In a finitely repeated game with known duration, there is a limited number of interactions between the buyer and seller. The seller may prioritize short-term profit over maintaining a good reputation for quality, since there won't be many repeated interactions with the same buyer. In a finitely repeated game with known duration, the players only interact a limited number of times and do not have the opportunity to establish a long-term relationship. Therefore, the desirability of maintaining a reputation for selling high-quality goods and services is minimal in this case.

The Desirability of Maintaining a Reputation for Selling High-Quality Goods