What is true about threats in the game in Scenario 13.15?
A) Simple can change the equilibrium by means of a credible threat; Boring cannot.
B) Boring can change the equilibrium by means of a credible threat; Simple cannot.
C) Boring can change the equilibrium by means of a credible threat only if it can move before Simple.
D) Simple can change the equilibrium by means of a credible threat only if it can move before Boring.
E) Neither firm has a credible threat with which to change this equilibrium.

Question

Quizplus · Accepted Answer

In Scenario 13.15, neither firm has a credible threat to change the equilibrium, indicating that any threats they might make are not credible enough to alter the strategic outcome.

What Is True About Threats in the Game in Scenario