Two firms are poised to enter the retail market.Entering the market will be profitable for one firm only if the other firm does not enter the market.This is an example of:
A)simultaneous game with perfect information.
B)a repeated game with contingent strategies.
C)bargaining game with multiple equilibria
D)a game with a first-mover advantage.
E)a non-zero-sum game.

Question

Quizplus · Accepted Answer

This scenario describes a situation where the first firm to enter the market can secure profits, deterring the second firm from entering. This is characteristic of a game with a first-mover advantage.

Two Firms Are Poised to Enter the Retail Market