Chapter 13 - A game where pursuing dominant strategies...

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Chapter 13 – Oligopoly: Firms in Less Competitive Markets Oligopoly A market structure in which a small number of interdependent firms compete. Patent The exclusive right to a product for a period of 20 years from the date the product was invented. 1. Oligopoly needs Strategy = Strategies that players employ to attain their objectives in the game. Business strategy Actions taken by a business firm to achieve a goal, such as maximizing profits. Prisoners’ dilemma
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Unformatted text preview: A game where pursuing dominant strategies results in noncooperation that leaves everyone worse off. OPEC (Organization of Petroleum Exporting Countries) is a Cartel-Tendency for cartels to breakdown b/c of Prisoner’s Theorem Cartel A group of firms that colludes by agreeing to restrict output to increase prices and profits. Dominant Strategy A strategy that is the best for a firm, no matter what strategies other firms use....
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