Mario's Pizza and Bella's Pizza are in tacit collusion to cooperate and each charge a high price for their pizzas. If Mario's Pizza initially cooperates with Bella's Pizza, but then switches and charges a low price and Bella's Pizza responds by forever charging a low price, this is an example of ________.
A) a trigger strategy
B) a tit-for-tat strategy
C) a one -shot game
D) an end-period problem
A) a trigger strategy
You might also like to view...
Under a nominal GDP targeting rule, the Federal Reserve
A) changes the interest rate only when real GDP, and hence nominal GDP, is off target. B) cannot use the federal funds rate to conduct monetary policy. C) must publish its expected inflation rate. D) lowers its interest rate when nominal GDP falls below target. E) loses its ability to influence the inflation rate.
Second-degree price discrimination:
a. is also known as block rate setting b. is imperfect in the eyes of a monopolist c. is regularly practiced by public utilities d. is effective only in the case of services or products which are sold in easily metered units e. all of the above
The idea that transfer benefits to the poor encourage behavior that increases the risk of poverty is known as the
a. Samaritan's dilemma. b. rule of inverse benefits. c. implicit marginal tax law. d. Smith paradox.
The path of income over a lifetime is likely to be much more stable than the path of consumption.
Answer the following statement true (T) or false (F)