Firms that use a tit-for-tat strategy will move from a co-operative Nash equilibrium to a non-co- operative Nash equilibrium.

Name: Firms that use a tit-for-tat strategy will move from a co-operative Nash equilibrium to a non-co- operative Nash equilibrium.
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Question

Quizplus · Accepted Answer

A tit-for-tat strategy typically encourages cooperation between firms by reciprocating the other firm's previous action, thereby maintaining a cooperative Nash equilibrium rather than moving towards a non-cooperative one.

Firms That Use a Tit-For-Tat Strategy Will Move from a Co-Operative