.
Backward induction
Focal point
Always aggress
Coordination
Folk
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Predatory pricing
Firms settling on round number price points and price increase increments
Using a single industry multiplier across firms to give discounts
Using a standard cycle for adjusting prices
Collusion
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Price umbrella
Price leading
Predatory pricing
Premium pricing
Price lining
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Lags in detecting competitors’ prices
Infrequent interactions with competitors
Ambiguities in identifying which firm among a group of firms in a market is cutting price
Difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand
All of the above
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Office supply
Airframe Manufacturing
Shipbuilding
Supercomputing
Automobile seat manufacturing
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Airframe manufacturing
Diesel locomotive production
Airline travel
Shipbuilding
Home construction
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Strategies more provocable and less forgiving than tit-for-tat
Strategies less provocable and more forgiving than tit-for-tat
Strategies equally provocable and equally forgiving as tit-for-tat
Grim trigger strategies
Always aggress strategies
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They cause an increase in detection lags because competitor prices become more difficult to monitor
There is a resultant decrease in the frequency of interaction between competitors
There is an increase in the probability of misreads
There is an increase in temptation to cut price, even if competitors are expected to match
There is an increase in detection lags because prices of competitors are more difficult to monitor
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Collusive agreement
Centipede Game
Folk Theorem
War of Attrition
Focal Point
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A strategy where a firm will always aggress regardless of how the other firm acts
A strategy where a firm will always cooperate regardless of how the other firm acts
A strategy in which a firm is prepared to match whatever changes in strategy the competitor makes
A strategy in which a firm initially cooperates and then aggresses for the rest of the game as soon as the opponent aggresses
A strategy in which a firm is prepared to aggress when its opponent cooperates and cooperate when its opponent aggresses
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Secrecy of sales terms
Significant threat of entry
Complexity of sales terms
Lumpiness of tuck engine orders
Fleet-buyers are price sensitive
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Breakfast cereal
Prime-rate loan
Tobacco
Steel until 1960s
Fast food hamburger
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When the Herfindahl index is close to 0 and the number of firms is large
When targeted price discounts can be implemented by rival firms
When the merge threatens to substantially increase market concentration
When the merge threatens to substantially decrease market concentration
In a large industry with many competitors, each having a relatively equal market share
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Dedicated pricing
Strategic pricing
Marginal pricing
Cost-plus pricing
Cooperative pricing
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Price leadership
Advance announcement of price changes
Price following
Most favored customer clauses
Uniform delivered prices
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Price cutting is easier to detect when demand conditions are volatile
Pricing condition becomes easier in a volatile demand condition because firms are chasing a moving target
Price cutting is harder to detect when demand conditions are stable
Demand volatility is an especially serious problem when the production involves substantial variable costs
Demand volatility is an especially serious problem when the production involves substantial fixed costs
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