What strategy involves cooperating initially and then mirroring the opponent's previous move?

The strategy that involves cooperating initially and then mirroring the opponent's previous move is known as "Tit for Tat." This approach is commonly discussed in the context of repeated games, particularly in the study of the Prisoner's Dilemma. The essence of this strategy lies in its simplicity and effectiveness: it starts with cooperation and responds in kind to the opponent’s actions.

When both players adopt the Tit for Tat strategy, they foster a stable and collaborative environment, as each player is motivated to maintain cooperation to avoid retaliation. This creates a balanced approach where if one player defects, the other responds with defection in the next round, which encourages a return to cooperation. The strategy effectively highlights the importance of reciprocity and trust in strategic interactions.

In contrast, "Prisoner's Dilemma" refers to a specific scenario illustrating why two individuals might not cooperate, even if it is in their best interest. "Dominant strategy" refers to a situation where a player has a single optimal strategy regardless of what the opponent does. "Price competition" typically involves firms competing by adjusting prices, which does not directly relate to the behavior of mirroring past moves. Therefore, Tit for Tat is the best fit for the described strategy.