The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1

-A player involved in a one-shot game will:
A)cooperate with its rivals due to the threat of punishment.
B)follow punitive strategies.
C)take actions aimed at creating a reputation with his rivals.
D)make moves that will maximize the present payoff.
E)follow a tit-for-tat strategy.

Question

The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1
 
-A player involved in a one-shot game will:
A)cooperate with its rivals due to the threat of punishment. 
B)follow punitive strategies. 
C)take actions aimed at creating a reputation with his rivals. 
D)make moves that will maximize the present payoff. 
E)follow a tit-for-tat strategy.

Quizplus · Accepted Answer

The Answer is D

The Following Matrix Gives the Profits (In Thousands of Dollars)for