A manufacturing firm maintains its price unless it observes its rival choosing to lower price. Any time the rival lowers price, the firm responds by lowering its own price. This is an example of a __________.
A)structural analysis
B)tit-for-tat strategy
C)strategic canvas
D)complementary game

Question

Quizplus · Accepted Answer

This is an example of a tit-for-tat strategy, where one player mirrors the action of their competitor. In this case, the manufacturing firm is responding to their rival's price decrease by also lowering their own price.

A Manufacturing Firm Maintains Its Price Unless It Observes Its