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In what ways is game theory of use in analyzing the behaviour of firms in an oligopolistic market?
An oligopolistic market is a market dominated by a small number of participants who are able to collectively exert control over supply and market prices. A recurrent theme of oligopoly theory is whether prices are determinate with oligopolistic interaction. *A number of interesting new developments on the oligopoly front can be traced back to Stigler (1964) who examined the relationship between collusion and the information structure of an oligopolistic market. He argued that the basic problem in colluding to maximize joint profits is that if policing the agreement. This is a problem i…
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- In what ways is game theory of use in analyzing the behaviour of firms in an oligopolistic market?
- The Hechsler - Ohlin Theory
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