What Is a Grim Trigger Strategy in a Two Firm

question 2

Multiple Choice

What is a grim trigger strategy in a two firm repeated game?

• A)A strategy where a firm will always aggress regardless of how the other firm acts
• B)A strategy where a firm will always cooperate regardless of how the other firm acts
• C)A strategy in which a firm is prepared to match whatever changes in strategy the competitor makes
• D)A strategy in which a firm initially cooperates and then aggresses for the rest of the game as soon as the opponent aggresses
• E)A strategy in which a firm is prepared to aggress when its opponent cooperates and cooperate when its opponent aggresses