Question

In some games, one player or firm moves first and commits to a strategy to which the rival player or firm will subsequently respond.Such games are called Select one: A. repeated games. B. credible games. C. sequential games. D. multi-period games.

Answer 1

C. Sequential Games (example - Stackelberg Competition)

In sequential games, a player (e.g. a firm) chooses an action (e.g. an output quantity), and the rival firm will respond by choosing its own action (e.g. choosing its output quantity, considering first mover firm's quantity).

Repeated games are extensive form games that consist of a number of repetitions of the some "base game". Repeated games are sometimes also called multi-period games. A credible game is the one in which one player gives a "threat" to other player/s which is credible (in the sense that once the player chooses an action, other players know that action is irreversible and can't be taken back).