ECO 550 Final Part 2


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When there is no Equilibrium (or no Nash Equilibrium), we expect that:         If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped         An illustration of a non-credible commitment is the promise         To trust a potential cooperator until the first defection and then never cooperate thereafter is         A key to analyzing subgame perfect equilibrium strategy in sequential games is         Electricity pricing that varies in its billing expense throughout the day is called         Third-degree price discrimination exists whenever:         Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting         Vacation tours to Europe invariably package visits to disparate regions:  cities, mountains, and the seaside.  Bundling, a type of second degree price discrimination, is most profitable when:         ____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied.         Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as         Vertical integration may be motivated by all of the following except:         Mac trucks and their dealers would likely have an organizational form of         Which of the following are not approaches to resolving the principal-agent problem?         When borrowers who do not intend to repay are able to hide their bad credit histories, a lender’s well-intentioned borrowers should         The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.         The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.         ____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.         The sentiment for increased deregulation in the late 1970’s and early 1980’s has been felt most significantly in the price regulation of         The antitrust laws regulate all of the following business decisions except ____.         Capital expenditures:         Which of the following items is (are) not considered as part of the net investment calculation?         The ____ depicts the risk-return relationship in the market for all securities:         The social rate of discount is best approximated by:         In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except: