The market for bagels contains two firms: BagelWorld (BW)and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars)depends on whether they abide by the agreement or cheat on the agreement.
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is known as:

Question

The market for bagels contains two firms: BagelWorld (BW)and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars)depends on whether they abide by the agreement or cheat on the agreement.  
 Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is known as:

Quizplus · Accepted Answer

In a tit-for-tat strategy for a repeated prisoner's dilemma, the players cooperate on the first move and then mimic their opponent's last move on each successive move.

The Market for Bagels Contains Two Firms: BagelWorld (BW)and Bagels'R'Us