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Which Statement Provides the BEST Example of a Grim Trigger

Question 177

Multiple Choice

Which statement provides the BEST example of a grim trigger rule?


A) A price increase by one firm is not met by the other firms in the market.
B) A decision by one firm triggers government regulation of all firms in the industry.
C) A negative decision triggers a tit-for-tat strategy.
D) A decision by one player to defect is met by a permanent retaliatory decision.

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