Figure: Pricing Strategy in Cable TV Market II
(Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II.If CableNorth followed a high-price strategy one month just to find it only earned
$80,000 because CableSouth followed a low-price strategy, and CableNorth then decided to lower prices for the next month, we would say that CableNorth is following:

Question

Quizplus · Accepted Answer

CableNorth's decision to lower prices after CableSouth followed a low-price strategy indicates that it is following a tit-for-tat strategy, where it responds to the actions of its competitor in a similar manner.