Consider the cartel of Trick and Gear.The game is repeated indefinitely and each firm employs a tit-for-tat strategy.The equilibrium is called
A)a credible strategy equilibrium.
B)a dominant player equilibrium.
C)a duopoly equilibrium.
D)a trigger strategy equilibrium.
E)a cooperative equilibrium.

Question

Quizplus · Accepted Answer

In a repeated game where firms use a tit-for-tat strategy, they are cooperating by matching the other firm's previous action, leading to a cooperative equilibrium.

Consider the Cartel of Trick and Gear