A strategy in which a firm takes the same action that another firm did in the last period is a _____ strategy.
A) tit-for-tat
B) trigger
C) duopoly
D) dominant

Question

Quizplus · Accepted Answer

A tit-for-tat strategy involves responding to a competitor's action with the same action. If a competitor cooperated in the last period, the firm cooperates in this period; if the competitor defected, the firm defects as well.

A Strategy in Which a Firm Takes the Same Action