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Tobacco Companies Did Not Resist the Advertising Ban Instituted in 1970

Question 43

Multiple Choice

Tobacco companies did not resist the advertising ban instituted in 1970 because they actually increased profits by not being allowed to advertise. This ban forced these companies to abandon their dominant strategy of advertising and wind up at a cooperative outcome of not advertising. Prior to the ban, the tobacco companies were involved in playing


A) a pure coordination game.
B) a prisoner's dilemma game.
C) an assurance game.
D) a battle of the sexes game.

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