(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. If Spectrum followed a high-price strategy one period but found that Sling followed a noncooperative low-price strategy, and Spectrum decided to lower prices for the next month, one would say that Spectrum is following a:

A)kinked demand model.
B)best response.
C)Grim trigger strategy.
D)collusive strategy.

Question

(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. If Spectrum followed a high-price strategy one period but found that Sling followed a noncooperative low-price strategy, and Spectrum decided to lower prices for the next month, one would say that Spectrum is following a:
​
 
A)kinked demand model. 
B)best response. 
C)Grim trigger strategy. 
D)collusive strategy.

Quizplus · Accepted Answer

The Answer of (Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. If Spectrum followed a high-price strategy one period but found that Sling followed a noncooperative low-price strategy, and Spectrum decided to lower prices for the next month, one would say that Spectrum is following a:
​
 
A)kinked demand model. 
B)best response. 
C)Grim trigger strategy. 
D)collusive strategy.