Assess the validity of the following statements I Cartels in which all the

# Assess the validity of the following statements i

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6. Assess the validity of the following statements. I. Cartels in which all the industry leaders went to the same schools and live in the same neighborhood areeasier to sustain than cartels in which the industry leaders don't really know or trust one another. II. It would be more difficult to sustain a cartel in an industry in which it's easy for a firm to sell a little extraproduct without anyone knowing than in an industry in which all sales are public and visible.
7. The prisoner's dilemma is one of the most important models in all of social science: Most games of trust canbe thought of as some kind of prisoner's dilemma. Here's the classic game: Two men rob a bank and arequickly arrested. The police do not have an airtight case; they have just enough evidence to put each man inprison for one year, a slap on the wrist for a serious crime. If the police had more evidence, they could put the men away for longer. To get more evidence, they put themen in separate interrogation rooms and offer each man the same deal: If you testify against youraccomplice, we will drop all the charges against you (and convict the other guy of the full penalty of 10years of prison time). Of course, if both prisoners take the deal the police will have enough evidence to putboth prisoners away and they will each get 6 years. And, as noted above, if neither testifies both will get justone year of prison time. What's the best thing for each man to do? In each cell in the table below, the first number is the number of years Butch will spend in prison, and thesecond is the number that Sundance will spend in prison given the strategies chosen by Butch and Sundance.If years in prison are minuses, then we can write it like this:If Sundance keeps quiet, what's the best choice for Butch? If Sundance chooses to testify, what's the bestchoice for Butch?
8. The prisoner's dilemma game is one of the most important models in all of social science: Most games oftrust can be thought of as some kind of prisoner's dilemma. Here's the classic game: Two men rob a bankand are quickly arrested. The police do not have an airtight case; they have just enough evidence to put eachman in prison for one year, a slap on the wrist for a serious crime. If the police had more evidence, they could put the men away for longer. To get more evidence, they put themen in separate interrogation rooms and offer each man the same deal: If you testify against youraccomplice, we will drop all the charges against you (and convict the other guy of the full penalty of 10years of prison time). Of course, if both prisoners take the deal the police will have enough evidence to putboth prisoners away and they will each get 6 years. And, as noted above, if neither testifies both will get justone year of prison time. What's the best thing for each man to do?