If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10 and chooses not to cooperate again. This is an example of what type of game strategy?

Question

Quizplus · Accepted Answer

Grim trigger is a strategy in a repeated game where a player responds to a deviation from cooperation with permanent non-cooperation. In this scenario, Sony's decision to permanently not cooperate after a single deviation by Nintendo exemplifies the grim trigger strategy.

If Nintendo Lowers the Price of Its Product by $10