Using the Odd-Even Psychological Pricing Strategy,a Restaurant Would Price an Entree

question 43

True/False

Using the odd-even psychological pricing strategy,a restaurant would price an entree at $10.00 rather than $9.95.

---

Definitions:

Perfectly Competitive Market

A market in which all participants are price-takers.

Tacit Collusion

An unspoken, illegal agreement among competitors to avoid competing directly, often leading to higher prices.

Explicit Collusion

An overt agreement among firms within an industry to fix prices, limit production, or engage in other anticompetitive practices.

Tit-For-Tat

A strategy in game theory where a participant replicates an opponent's previous action, whether cooperative or competitive.