Exam 7: The Dynamics Competing Across Time

What term refers to the situation in the used car market where owners are more anxious to sell low-quality cars than high-quality cars?

What is a grim trigger strategy in a two firm repeated game?

Cooperative pricing is helped by which of the following situations?

What term describes a decision that has a short-term impact and is easy to reverse?

What type of option exists when a decision maker has the opportunity to tailor a decision to information that will be received in the future?

In a six-firm market,if all firms charge the monopoly price,the profit equals $120,000.In that same six-firm market,if all firms instead charge the prevailing price,the profit is $60,000.If the pricing period is one-month long,what is the maximum monthly discount rate implied for each firm to still have an incentive to independently price at the monopoly level?

Which of the following practices can help firms facilitate cooperative pricing?

What term describes a decision that has a long-term impact and is difficult to reverse?

What type of cooperation-inducing strategy is defined as one so compelling that that a firm would expect all other firms to adopt it?

Which set of advice below should a manager disregard when seeking pricing stability that is least likely to suffer from antitrust legislation?

Why might a firm not be able to react quickly to competitors' pricing moves?

What step of Ghemawat's framework for analyzing commitment intensive choices involves analyzing whether the firm's commitment is likely to result in a product market position in which the firm delivers superior benefits to consumers or operates with lower costs than competitors?

What type of clause is a provision in a sales contract that promises a buyer that it will pay the lowest price the seller charges?

Suppose that a firm offers secret discounts to 200 customers in a particular industry to attract those customers from a competitor firm.If there is a 2% probability that any one of those customers will disclose the pricing,what is the probability that the firms competitors will hear from one of those 200 customers? Suppose there are instead 20 buyers to which discounts are offered.What is the probability then that the competitors may find out about one of the discounts?

What tactical term best describes the capacity relationship between Toyota and Honda such that Toyota's response is to reduce production output of the Rav 4 if Honda were to first announce a large increase in the production of the CR-V that drove down prices?

How much revenue a firm brings in by improving the quality of a product such that more consumers want to buy it depends on which two factors?

Which of the following terms describes the situation created by a large dominant firm where smaller firms can find buyers as long as they sustain a lower price?

Which of the following is an example of a market where barometric price leadership occurs?

What process involves using computer simulations to track the likely competitive implications of pricing and investment decisions over many years?

Which of the following statements is true about a tough commitment?