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Learn how game theory analyzes the interdependent decisions of firms in an oligopoly, and how they can use dominant strategies, nash equilibria, and. How does game theory relates to oligopoly oligopolists must pattern their actions according to the actions and expected reactions of rivals by. Jack and jill choose how many gallons. Game theory can be used to demonstrate that oligopolists can increase their profits through collusion.
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See examples of the prisoners' dilemma and nash equilibrium in.