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Strategy game theory of Tit for Tat

Garbanzo lowers the price for its salad buffet. Pinto’s, a close by rival restaurant, in that case lowers its price for its salad buffet, a near substitute. If Garbanzo notices it, then the manager lowers the price again. It trend continues. Such restaurants are following a strategy game theorist’s call: (i) Nash equilibrium. (ii) tit-for-tat. (iii) the domino effect. (iv) grim strategy. (v) cut-throat competition.

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