Under which of the following game theory circumstances is a collusive outcome most likely?
A)Prisoner's dilemma
B)Repeated games
C)Games with dominant-strategy outcomes
D)Games with Nash equilibrium

Question

Quizplus · Accepted Answer

In repeated games, players have the opportunity to establish trust and develop a reputation for cooperation. This can lead to collusive outcomes where players coordinate on a mutually beneficial strategy rather than choosing their dominant or Nash equilibrium strategies in each round. In contrast, both the prisoner's dilemma and games with dominant-strategy outcomes incentivize players to defect rather than collude. Games with Nash equilibrium describe situations where players are making the best decision given their opponents' choices, but this does not necessarily lead to collusive outcomes.

Under Which of the Following Game Theory Circumstances Is a Collusive