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Connor's Corner Gas and Steven's Super Fuel Are the Only

Question 181

Multiple Choice

Connor's Corner Gas and Steven's Super Fuel are the only two providers of gasoline in their small town. Connor summarizes his pricing strategy as, "I'll do to Steven (price-wise) what Steven did to me last time." This is an example of:


A) a best response.
B) a Grim trigger strategy.
C) an irrational strategy.
D) a follow-the-leader strategy.

Correct Answer:

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