In many business situations one firm will act first, and then other firms will respond.To help analyze these types of situations economists use

Question

Quizplus · Accepted Answer

Sequential games are used to analyze business situations where one firm acts first and other firms respond. In these games, the actions of each player are taken into consideration when deciding the optimal strategy. Retaliation games involve a player responding with a higher level of aggression, which may not always be the optimal strategy. Follow-the-leader games are not a specific type of game theory analysis. Bargaining games involve negotiating between players to reach a mutually beneficial outcome, which is not relevant in this scenario.

In Many Business Situations One Firm Will Act First, and Then