Which statement provides the BEST example of a grim trigger rule?
A) A price increase by one firm is not met by the other firms in the market.
B) A decision by one firm triggers government regulation of all firms in the industry.
C) A negative decision triggers a tit-for-tat strategy.
D) A decision by one player to defect is met by a permanent retaliatory decision.

Question

Quizplus · Accepted Answer

The grim trigger strategy in game theory involves a player responding to a defection by another player with a permanent defection of their own. This means if one player deviates from a cooperative strategy, the other player will retaliate by forever refusing to cooperate in the future, which is best exemplified by option D.

Which Statement Provides the BEST Example of a Grim Trigger