A finitely repeated game differs from an infinitely repeated game in that:
A. The former needs a lower interest rate to support collusion than the latter needs.
B. There is an "end-of-period" problem for the former.
C. A collusive outcome can usually be sustained in the former but not the latter.
D. All of the above.
Answer:B
A finitely repeated game differs from an infinitely repeated game in that:
A. The former needs a lower interest rate to support collusion than the latter needs. B. There is an "end-of-period" problem for the former. C. A collusive outcome can usually be sustained in the former but not the latter. D. All of the above.