A successful tit-for-tat strategy leads to

Question

Quizplus · Accepted Answer

A successful tit-for-tat strategy involves mirroring the previous action of a competitor in a repeated game, which can result in tacit collusion. This means that the firms implicitly cooperate by avoiding aggressive actions that would harm both parties, leading to a stable oligopoly market structure. Choice A, B, and C are incorrect as they all involve explicit collusion, which is illegal and violates antitrust laws. Choice E is incorrect as a successful tit-for-tat strategy promotes market equilibrium rather than disequilibrium.

A Successful Tit-For-Tat Strategy Leads to