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Unformatted text preview: Game Theory – An approach that analyzes oligopolistic behavior as a series of strategic moves and counter-moves by rival firms Prisoner’s Dilemma – A game that shows why players have difficultly cooperating even though they would benefit from cooperation Strategy – In game theory, the operational plan pursued by a player Payoff Matrix – In game theory, a table listing the payoffs that each player can expect based on the actions of the other players Dominant – Strategy Equilibrium – In game theory, the outcome achieved when each player’s choice does not depend on what the other player does Duopoly – A market with only two producers; a type of oligopoly market structure Tit for Tat – In game theory, a strategy in repeated games he a player in one round of the game mimics the other player’s behavior in the previous round; an optimal strategy for encouraging the other player to cooperate...
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