Question at position 31 Section 1: What is Walmart's dominant strategy? (none of the choices listed here)Price HighWalmart does not have dominant strategyPrice Low

Question

BlackTom AI · Accepted Answer

Let's parse the question and the answer set to understand what's being asked about Walmart's dominant strategy in a pricing context.
Option 1: '(none of the choices listed here)'. This choice asserts that none of the listed prices constitute Walmart's dominant strategy. Since the given answer indicates that 'Price Low' is the intended dominant strategy, this option would be incorrect if we accept that there is a clear dominant strategy among the provided choices.
Option 2: 'Price High'. Proclaiming that Walmart’s dominant move is to raise prices ignores common competitive dynamics in retail, where high prices tend to reduce demand relative to rivals offering lower prices. Unless there is a specific context where customers are price-insensitive or branding makes high pricing a dominant move, this option is generally not supported as Walmart’s dominant strategy in standard models.
Option 3: 'Walmart does not have dominant strategy'. This asserts the absence of a dominant strategy. In standard strategic pricing discussions, a dominant strategy is one that yields the best payoff regardless of the competitor’s action. If the context or the provided answer identifies a clear best response across rival pricing (for example, consistently setting a low price to attract more customers), then denying the existence of a dominant strategy would be at odds with that interpretation. Therefore, this option would be incorrect under the premise that a dominant strategy has been identified.
Option 4: 'Price Low'. This choice states that selecting a low price is Walmart’s dominant strategy. In many competitive retail pricing scenarios, underscoring a low-price approach can serve as a dominant strategy by attracting more price-sensitive customers and potentially deterring rivals from chasing profits with higher prices. The logic hinges on the idea that lower prices yield higher relative demand and cannibalize competitors, making it the strongest unilateral move across possible opponent responses.
In summary, option-by-option reasoning shows that the first three choices conflict with the typical interpretation of a dominant pricing strategy in competitive retail, whereas the fourth option aligns with that interpretation, explaining why 'Price Low' is identified as the dominant strategy in this context.

Question at position 31 Section 1: What is Walmart's dominant strategy? (none of the choices listed here)Price HighWalmart does not have dominant strategyPrice Low

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