The model of Milgrom and Roberts describes an infinitely repeated games.Select one:TrueFalse

The model of Aghion and Bolton describes a finitely repeated game.Select one:TrueFalse

Game theory models are classified by the

Which of these is a characteristic of infinite games?a.Only known playersb.Agreed upon objectivesc.Fixed rulesd.Objective is to keep the game in play

Consider an industry in which FOUR firms compete in prices with an infinite horizon and a discount factor δ. All firms have a constant marginal cost of c. Initially, total demand in the industry is D(p) but demand is growing every period by a growth rate of g>0. This means demand in the next period is (1+g)D(p), demand in the following period is (1+g)2 D(p) and so on. Consider a subgame perfect equilibrium of the infinitely repeated price game in which firms charge the monopoly price and use trigger strategies with indefinite reversion to the static Nash equilibrium. Assume the growth rate is g=1/4. What is the lowest value of the discount factor for which collusion can be sustained? [Give a number between 0 and 1 with a maximum of two decimals.]

Suppose the following normal form game is played twice. Players observe the actions chosen in the first period prior to the second period. Each player's total payoff is the sum of his/her payoff in the two periods.Consider the following strategy: Play A in period 1, play C in period 2 if the action profile in period 1 is (A;A), otherwise play B. What is the highest value of x>0 for which playing the stated strategy by both players is a subgame perfect equilibrium of the twice repeated game?  A B CA 1,  7 0,  4 0,  0B 4,   0 x   x 0,  0C 0,  0 0,  0 7, 1[Write your answer as a decimal number like 0.33]