Suppose that the firms in an oligopolistic market engage in a price war and, as a result, all firms earn lower profits. Game theory would describe this as what?
an irrational strategy
a prisoners' dilemma
a contestable market© BrainMass Inc. brainmass.com September 21, 2018, 6:18 pm ad1c9bdddf - https://brainmass.com/economics/game-theory/game-theory-317381
The solution provides a brief answer with some explanation. The explanation is simple and easy to understand.