A "Credible Threat":
A) is also called a "tit-for-tat" strategy.
B) always sets a low price.
C) minimizes the return of your opponent.
D) is a strategy selection that is in your best interest.
E) provides the best return for both players.

Question

Quizplus · Accepted Answer

A credible threat is a strategy selection that is in your best interest. It is a threat that your opponent believes you will follow through on, and in turn, causes them to change their behavior to avoid the consequences of the threat. Therefore, it is a useful tool in negotiations or in competitive situations where both parties have something to gain or lose.