The mangers of Happy Campers and Camp with Us are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A)the Pareto criterion
B)unpredictable strategies
C)an announcement made by either firm regarding their future plans
D)a focal point

Question

Quizplus · Accepted Answer

Unpredictable strategies would not help the managers determine the equilibrium outcome as they would introduce uncertainty and could potentially lead to undesirable outcomes. The other options - the Pareto criterion, an announcement made by either firm regarding their future plans, and a focal point - would all provide some guidance in determining the equilibrium outcome.

The Mangers of Happy Campers and Camp with Us Are