Being First to Initiate a Strategic Move Can Have a High

question 54

Multiple Choice

Being first to initiate a strategic move can have a high payoff in all but which one of the following instances?

• A)When pioneering helps build a firm's image and reputation with buyers
• B)When first-time customers remain strongly loyal to pioneering firms in making repeat purchases
• C)When early commitments to new technologies,new-style components,new or emerging distribution channels,and so on can produce an absolute cost advantage over rivals
• D)When moving first can constitute a preemptive strike,making imitation extra hard or unlikely
• E)When pioneering leadership is costlier than followership

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Definitions:

Nash Equilibrium

A principle in game theory stating that there is no advantage for any player to alter their strategy if all other participants maintain their current strategies.

Simultaneous Move Game

A game theory model where all players make their decisions or moves at the same time, without knowledge of the others' choices.

Prisoner's Dilemma

A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome.

Lockout

A situation where an employer prevents employees from entering the workplace, typically during a labor dispute.