In game theory, a firm under "(non-corporative) simultaneous game" may make a strategic commitment so as to change the situation from simultaneous game to "sequential game" in which it plays a role of leader. For attaining this objective, the firm's strategic commitment must be "credible".

(1) Identify a real-world business example of sequential game in which a firm plays a role of leader by making strategic commitment.

(2) Discuss why the identified strategic commitment in your example is credible

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Realworld Business Example One example of a sequential game where a firm plays the role of a leader ... View the full answer