Which of the following situations is least likely to involve strategic interaction?
A) two countries deciding whether to impose trade restrictions on each other
B) competing convenience stores deciding how much to charge for coffee
C) two customers deciding which toaster to buy from Target
D) a state legislature deciding whether to legalize casino gambling

Question

Quizplus · Accepted Answer

Strategic interaction involves decision-making that takes into account the actions and reactions of other agents. In option C, two customers deciding which toaster to buy from Target does not involve strategic interaction between the customers, as each customer's decision is independent of the other's. In contrast, options A, B, and D involve entities making decisions that directly consider the potential responses of others.

Which of the Following Situations Is Least Likely to Involve