Consider the game between the teens from the previous question. Instead of being a simultaneous game, suppose it is sequential, with teen A moving first. What is the subgame-perfect equilibrium of this new game?
a. Both Declare.
b. Both Ignore/Rebuff.
c. It is a mixed strategy equilibrium.
d. Teen A Declares and Teen B follows A's action.
d
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AutoCorp is a reputed automobile manufacturer while SUVmart is an independent distributor who buys automobiles from the former. During the current year, SUVmart wants to buy its quota of 250 Rhinos from AutoCorp. For the quota system to work efficiently, AutoCorp must commit credibly to the:
A. retail price. B. double markup. C. exclusive territory. D. wholesale price.