When a firm cooperates if the other cooperates,but plays the Nash equilibrium strategy forever if the other cheats,the strategy is a
A)dominant strategy.
B)trigger strategy.
C)tit-for-tat strategy.
D)wimp's strategy.
E)cooperative strategy.

Question

Quizplus · Accepted Answer

The strategy described is a trigger strategy, where a player cooperates as long as the other player cooperates, but will switch to a non-cooperative strategy if the other player cheats. This is a way to incentivize cooperation and deter cheating.

When a Firm Cooperates If the Other Cooperates,but Plays the Nash