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Class 1 – Course Introduction |
 | | A player using a trigger strategy continues to choose the same action until some other player takes an action that "triggers" a different action by the first player. |
 | | Grim Strategy: The firm: (1) cooperates in the first period, (2) cooperates in every succeeding period, provided the other firm does likewise, and (3) deviates forever after, if the other firm ever deviates. |
 | | Grim Pricing Strategy: The firm: (1) sets a high price in the first period, (2) sets a high price in every succeeding period, provided the other firm does likewise, and (3) sets low prices forever after, if the other firm ever charges a low price. |
| faculty.babson.edu /gwin/ecn3630/classes/class10suppl.htm (970 words) |
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