Game theory suggests that competing firms in an, Ask an Expert

Economics

Game Theory suggests that competing firms in an oligopolistic industry may be:

a. too quick to raise prices because they fail to anticipate that rivals may gain market shares.

b. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases.

c. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases.

d. too quick to cut prices because they fail to anticipate that rivals may also cut their prices.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235469

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