Asked by Mithra Rathinappillai on Jul 03, 2024
Verified
Game theory is best suited to analyze the pricing behavior of
A) pure monopolists.
B) pure competitors.
C) monopolistic competitors.
D) oligopolists.
Game Theory
A theoretical framework for conceiving social situations among competing players and predicting their optimal decisions.
Pricing Behavior
Strategies and factors that firms consider when setting prices for their products or services.
Oligopolists
Firms or entities within an oligopoly, a market structure dominated by a few large producers or suppliers.
- Comprehend the application and implications of game theory in strategic decision-making within oligopolies.
Verified Answer
RK
Ritoug KelenjibashianJul 09, 2024
Final Answer :
D
Explanation :
Game theory is most applicable to oligopolistic markets, where a few firms dominate and the actions of one firm significantly impact the others. In such markets, firms often engage in strategic behavior, making game theory a useful tool for analyzing their pricing and other competitive strategies.
Learning Objectives
- Comprehend the application and implications of game theory in strategic decision-making within oligopolies.