Question

In an indefinitely repeated​ game, a firm might use a​ ________ to​ ________ a rival that defects from a cooperative strategy. A. trigger​ strategy; threaten B. trigger​ strategy; punish C. legal​ maneuver; sue D. tacit​ threat; dissuade

Answer 1

Option B is correct

Step-by-step explanation:

In an indefinitely repeated​ game, a firm might use a​ trigger​ strategy to​ punish a rival that defects from a cooperative strategy. A trigger strategy threatens other players with a punishment of a worse level if they deviate from the decided action profile.

In this game, players interact repeatedly with each other which might foster cooperation. Repeated games mean a situation in which the same stage game is played at each date.