Module 1 Vocabulary Flashcards
1
Q
What is Best Response?
A
A strategy of a player is a best response to the strategies of the others in the game if, taking the other players’ strategies as given, it gives her greater payoffs than any other strategy she has available.
2
Q
What is a Cartel?
A
A Cartel is a group of firms that collude to produce the monopoly output and sell at the monopoly price. OPEC, the oil cartel, is the classic example.
3
Q
A
