Purchase Solution

Game theory and oligopoly

Not what you're looking for?

Ask Custom Question

Please help me figure this out so I would know how to work this problem if it does come up again.

Please see attachment.

Attachments
Purchase this Solution
Solution Summary

Application of game theory to oligopolistic market

Solution Preview

Using the chart, we can see that each airline has a dominant strategy of charging the low price. This occurs when the airline's most profitable move is always the low price, given ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • behavior of firms in oligopoly markets

    So game theory really isn't a "solution" to the problem of oligopoly pricing at all! That had become pretty clear to economists by the 1960's, and many economists lost interest in game theory.

  • Oligopoly Model

    Your answer is not correct because "Game theory" and "Kinked Demand Curve" are not models of oligopoly. The correct answers are Bertrand Model and Cournot models.

  • monopoly, oligopoly, and cartel

    Game theory is used to explain different models of behavior in oligopolies and cartels. For example, game theory can explain interactions of firms when the firms choose prices simultaneously.

  • application of game theory to the study of oligopolistic industries

    -how game theory give better explanation for oligopoly and use "game free" to support answer Dear Student, Please find the attached solution. Thanks The application of game theory to the study of oligopolistic industries is depicted.

  • Monopoly, an oligopoly,and a cartel.

    Provide an example of a monopoly, an oligopoly, and a cartel. Discuss the welfare effects of monopolies and oligopolies. Explain the game theory. Using your own words, discuss the economic purpose of OPEC.

  • Market structure

    example of a monopoly, an oligopoly, and a cartel. 3.Discuss the welfare effects of monopolies and oligopolies. 4.How does game theory explain the interactions of firms within oligopolies and cartels?

  • Tit fot Tat pricing

    Now, let us understand how tit for tat works from the perspective of Game Theory. In game theory, the prisoner's dilemma is a type of non-zero-sum game in which two players can "cooperate" with or "betray" the other player.

  • Oligopoly theories

    So game theory really isn't a "solution" to the problem of oligopoly pricing at all! That had become pretty clear to economists by the 1960's, and many economists lost interest in game theory.

  • game theory

    Regards In this case, game theory is applied.

  • Monopoly, Oligopoly, Cartel and OPEC

    Explain the difference between a monopoly and an oligopoly, and a cartel. 2. Provide an example of a monopoly, an oligopoly, and a cartel. 3. Discuss the welfare effects of monopolies and oligopolies. 4. Explain the game theory. 5.

View More Related Solutions