What Is Meant by "Game Theory

question 10

Essay

What is meant by "game theory?"

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share.

Collude

To collude means to come to a secret understanding for a harmful purpose; collaboration typically occurs between firms to set market prices unfairly.

Tacit Collusion

An unspoken, implicit agreement among competitors to not compete aggressively, often leading to higher prices and less competition without explicit communication or agreements.