If you and your rival plan to hand your businesses down to your children (and th

Question

If you and your rival plan to hand your businesses down to your children (and this "bequest" goes on forever), then a Nash equilibrium when the interest rate is zero and both players use trigger strategies is: Answer a. For each firm to not advertise until the rival does, and then to advertise forever after b. For your firm to always advertise since the rival cannot/should not be trusted c. For your firm to never advertise d. For each firm to advertise until the rival does not advertise, and then not advertise forever after

Explanation / Answer

d. For each firm to advertise until the rival does not advertise, and then not advertise forever after

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