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Suppose Three Firms Are in an Oligopoly and Each Firm

question 168

Essay

Suppose three firms are in an oligopoly and each firm has a dominant production strategy.Would it be possible to determine the Nash Equilibrium solely from knowledge about the firms' dominant strategies? Suppose one of the three firms is irrational and plays a strategy other than its dominant strategy.Is it possible to determine the best course of action of the other two firms?


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Non-material rewards that come from within an individual, such as personal satisfaction or joy from completing a task or learning something new.

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