Adelaide's Bakery initially prices high and hopes that her rival, Judith's Baked Goods, follows suit. From then on, Adelaide copies the strategy played by Judith in the prior period. This is an example of the _____ strategy.

Question

Quizplus · Accepted Answer

The described strategy is an example of the tit-for-tat strategy, where Adelaide initially cooperates by setting a high price and then mimics Judith's previous pricing strategy in subsequent periods.

Adelaide's Bakery Initially Prices High and Hopes That Her Rival