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The classic game is the Prisoners’ Dilemma - this is
shown in the tables below:
A range of oligopoly games have been developed in recent
years. Game theory can be
applied to both price and non-price competition within an oligopoly, e.g.,
- Spend
huge sums on an advertising campaign against rival firms?
- Enter
a price war or keep prices constant
- Engage
in costly research and development or not.
Game
theory by Chris Price and Dominic Legg
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