A tit-for-tat strategy is one in which oligopolies
A) cooperate as long as other members cooperate, but if anyone cheats, they cut the price until the cheater reverts to cooperation.
B) cooperate almost all of the time, but occasionally do not cooperate in order to fool the antitrust authorities.
C) keep cutting prices to punish rivals until the competitive price is reached.
D) try to avoid the problems of the prisoners' dilemma, but actually make themselves worse off.
A
You might also like to view...
The benefit from a good or service that you purchase is measured by
A) the dollar amount that is paid for the good or service. B) the dollar amount you can get by selling the good or service. C) what you are willing to give up to obtain the good or service. D) how strong the incentives were that led to buying the good or service. E) None of the above answers is correct because there is no way to measure the benefit you receive from purchasing a good or service.
If the shoplifter knows that the security guard has a reputation of always being vigilant, what is his best response?
a. Steal b. Not steal c. Run d. Hide