Unlike a one-shot game, in a repeated game:
A) players have the opportunity to use mixed strategies.
B) each player's objective is to claim a greater payoff with the first move.
C) players have the opportunity to build trust and cooperation.
D) a player's prior reputation carries relatively little importance.
E) players are obliged to take independent actions.

Question

Quizplus · Accepted Answer

In a repeated game, players have the opportunity to build trust and cooperation over time through their repeated interactions. This allows for the development of strategies that benefit all players, rather than just seeking individual payoffs with independent actions. Choice A is true for both one-shot and repeated games. Choice B does not accurately reflect the objectives of players in a repeated game. Choice D is incorrect as a player's prior reputation can greatly impact how others choose to interact with them in repeated games. Choice E is also incorrect as repeated games involve multiple rounds of interaction, allowing for players to adjust their strategies based on past outcomes.

Unlike a One-Shot Game, in a Repeated Game