In the game in Scenario 13.2, the equilibrium strategies:

A) are for both firms to offer rebates.
B) are for ABC to offer a rebate, and XYZ not to offer a rebate.
C) are for XYZ to offer a rebate, and ABC not to offer a rebate.
D) are for both firms to offer no rebate.
E) does not exist in pure strategies.

Equilibrium Strategies

The optimal plans of action for players in a game, where each player's strategy is the best response to the strategies of others.

Rebates

A partial refund to someone who has paid too much for tax, rent, or a utility, or a marketing strategy offering a discount on an initial purchase back after the fact.

Firms

Business organizations or entities that produce goods or provide services, ranging in size from single proprietorships to large corporations.