The tit-for-tat strategy implies that the firms

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The tit-for-tat strategy involves cooperating on the first round and then following the competitor's reactions on the subsequent rounds. This means that if the competitor raises prices, the firm will also raise prices in response, and if the competitor lowers prices, the firm will also lower prices in response. The goal is to maintain a stable and predictable market environment while also ensuring that any price changes do not give one firm a significant advantage over the others.

The Tit-For-Tat Strategy Implies That the Firms