8. Repeated Games and Bargaining

Folk Theorem Intuition — Quiz

Test your understanding of folk theorem intuition with 5 practice questions.

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Practice Questions

Question 1

What is the main intuition behind the folk theorem in repeated games?

Question 2

Why might cooperation be possible in a repeated Prisoner's Dilemma even though defection is dominant in one shot?

Question 3

What is a grim trigger strategy?

Question 4

How does a higher discount factor affect the possibility of cooperation?

Question 5

Which outcomes are emphasized by the folk theorem intuition?