Game Theory Applications
Introduces game theory concepts such as the Nash Equilibrium and the Prisoner's Dilemma. Applies these models to real-world firm behaviors like collusion and price wars.
About This Topic
Introduces game theory concepts such as the Nash Equilibrium and the Prisoner's Dilemma. Applies these models to real-world firm behaviors like collusion and price wars.
Key Questions
- What constitutes a Nash Equilibrium in an oligopoly?
- How does the Prisoner's Dilemma explain the breakdown of cartels?
- How can credible threats alter competitor behavior?
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