It is easier to sustain tacit collusion in an infinitely repeated game if
A. the present value of cheating is lower than collusion.
B. there are many players.
C. the interest rate is higher.
D. both a and c.
Answer:A
It is easier to sustain tacit collusion in an infinitely repeated game if
A. the present value of cheating is lower than collusion. B. there are many players. C. the interest rate is higher. D. both a and c.