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Sarah's Soothing Nappies, Inc

Question 69

Multiple Choice

Sarah's Soothing Nappies, Inc. and Orville's Odourless Nappies, Inc. are duopolists who have agreed to collude. Orville has decided that he will comply with the collusive agreement as long as Sarah cooperated in the previous period. But if Sarah cheated in the previous period, Orville will punish Sarah by cheating in the current period. Orville's strategy is referred to as a


A) Nash strategy.
B) tit- for- tat strategy.
C) monkey- see, monkey- do strategy.
D) trigger strategy.

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