Question: Consider the following pricing game between Sony and Microsoft. If they apply an optimal trigger strategy (zero interest rate), how long is the minimum period

Consider the following pricing game between Sony and Microsoft. If they apply an optimal trigger strategy (zero interest rate), how long is the minimum period necessary to punish a player for deviating from the Pareto-optimal outcome? Pricing Game Microsoft Sony High Low High (9; 9) (1; 16) Low (16; 1) (7; 7)

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3. To understand that the first impression means a lot, and it takes a lot of energy to change this first impression.