Asked by Thais De Charentenay on Jul 09, 2024

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​If Mattie wants to discourage Irene from entering the market,what strategy should she follow?

A) ​Threaten to always accommodate
B) Always accommodate
C) Threaten to always fight
D) ​All of the above

Sequential Game

A type of game theory model where players make decisions one after another rather than simultaneously.

Monopolized

A market condition where a single entity controls the entire supply of a product or service, eliminating competition.

Discourage

To dissuade or deter someone from taking a particular action or continuing a certain behavior by instilling doubt or fear of consequences.

  • Study the differential outcomes of sequential and simultaneous games.
  • Identify first-rate solutions in models based on game theory.
  • Discern the role of threats and commitments in the context of strategic exchanges.
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DL
Daily LifewithmandaaJul 11, 2024
Final Answer :
C
Explanation :
If Mattie threatens to always fight, Irene will be discouraged from entering the market as both will incur a 5 million loss. Accommodating or threatening to accommodate Irene will make it easier for Irene to enter the market, which Mattie should try to prevent. Therefore, the best choice for Mattie is to threaten to always fight.