Explore BrainMass

Game Theory

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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

price leadership

a contestable market

© BrainMass Inc. brainmass.com September 21, 2018, 6:18 pm ad1c9bdddf - https://brainmass.com/economics/game-theory/game-theory-317381

Solution Summary

The solution provides a brief answer with some explanation. The explanation is simple and easy to understand.