... with GM (car maker) and Fisher Body (parts manufacturer) below • The Five Strategies and Examples – Contracts: The 2nd-mover firm guarantees the 1st-mover firm that it will not be exploited, GM gave ... offer is almost never made When made, it is rejected Offers under $2 are relatively rare When made, rejected half of the time Most common offers between $3 and $4—above the “rational” minimum offer ... indefinitely Now, firms must consider current and future profits, and must distinguish an action from a strategy • Strategies to Avoid a Prisoner’s Dilemma Outcome – Firms can follow a trigger strategy, ...