1. A 2006 paper by Margeret Levenstein and Valerie Suslow (“What Determines Cart

Question

1. A 2006 paper by Margeret Levenstein and Valerie Suslow (“What Determines Cartel Success?”) found that although cheating is a common cause of why cartels broke down, the following causes are even more common: entering firms, the nature of the demand curve, growth of the industry, and difficulty of bargaining between conspirators. What other cause is also associated with bargaining difficulties?
A) cheating
B) exiting firms
C) the nature of the industry
D) the nature of the supply curve (I know this answer to be incorrect)

2. In the prisoner's dilemma, the dominant strategy is:
A) in the best interest of the players in the game. (I know this answer is incorrect)
B) in the least interest of the players in the game.
C) a moderate outcome for the players in the game.
D) not a possible outcome in the game

3. If women conspired together and demanded that any man wishing to take them on a date must take them to a nice restaurant, why would this be unsustainable?
A) Some women will secretly allow guys to take them to cheaper restaurants.
B) Some women will cheat on their boyfriends to go out to nice restaurants. (I know this answer is incorrect)
C) Some men will cheat and take dates out to an even more expensive restaurant than is required.
D) The government will arrest all women for conspiring against the public

Explanation / Answer

1. B) exiting firms

2.   C) a moderate outcome for the players in the game.

3. A) Some women will secretly allow guys to take them to cheaper restaurants.

If you don't understand anything then comment, i'ill revert back on the same. :)

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