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

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Sequential games involve one firm acting first and then other firms responding, which is exactly what is described in the scenario given. Retaliation games involve firms reacting aggressively to each other's actions, follow-the-leader-games involve firms copying the actions of a market leader, and bargaining games involve firms negotiating to reach an agreement. While these types of games may be relevant in certain business situations, they do not specifically address the scenario described.

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