
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 17 of 36 - Oligopoly Section 9 of 23 … Figure 1 - The Prisoners' Dilemma Game Theory ChatGPT: game theory is the study of how people or groups make decisions in situations where the outcome depends on the choices of multiple players. Each player chooses a strategy, aiming to maximize their own benefit, while considering what others might do. A key concept is the Nash Equilibrium, where no player can do better by changing only their own strategy. Game theory helps explain competition, cooperation, and conflict in economics, politics, and everyday life. … In this game two criminals are suspected of committing a crime. The sentence each receives depends both on · his or her decision whether to confess or remain silent · the decision made by the other prisoner … Oligopolies would like to reach the monopoly outcome, where profit is maximized. Doi...