Chapter 17 - Oligopoly Flashcards
1
Q
Collusion
A
An agreement among firms in a market about quantities to produce our prices to charge
2
Q
Dominant strategy
A
A strategy that is best for a player in a game regardless of the strategies chosen by the other players
3
Q
Game theory
A
The study of how people behave in strategic situations
4
Q
Nash equilibrium
A
A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all other actors have chosen
5
Q
Prisoners dilemma
A
A particular game between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
6
Q
Cartel
A
A group of firms acting in unison
