If You and Your Rival Plan to Hand Your Business

Multiple Choice

If you and your rival plan to hand your business down to your children, and this "bequest" goes on forever, then a Nash equilibrium when the interest rate is zero is for

A) your firm to never advertise.
B) your firm to always advertise when your rival does provided that the interest rate is sufficiently large.
C) each firm to not advertise until the rival does, and then to advertise forever provided the interest rate is sufficiently low.
D) each firm to advertise until the rival does not advertise, and then not advertise forever.