Strategy of lowering then high price in market power

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Juan, Celia, Cassie and Gupta operated rival gas stations at 4 corners of an intersection. Every one originally charged similar price for their gasoline but after Gupta slashed his prices, Juan and Celia as well as Cassie all shut down. Gupta in that case boosted prices sharply. Therefore Gupta’s strategy was an illustration of: (i) monopolistic competition. (ii) tit-for-tat game theory. (iii) cartelization. (iv) predatory behavior. (v) monopoly capitalism.

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