Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?

Name: Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?
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Question

Quizplus · Accepted Answer

Tit-for-tat is a strategy in which one firm initially matches the other firm's pricing strategy but then responds to subsequent pricing decisions by the other firm. This helps to prevent a low-price outcome as both firms are aware that if one firm lowers its prices, the other firm will respond in kind.

Which of the Following Is a Game Theory Strategy for Oligopolists