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