Why Do Economists Refer to the Pricing Strategies of Oligopoly

question 1

Essay

Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?

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Definitions:

Gut-Level

A response or reaction based on instinctive emotional feelings rather than considered thought.

Employment Decisions

The process of making choices related to hiring, retaining, promoting, and terminating employees within an organization, based on factors like skills, performance, and organizational needs.

Hindsight Bias

The predisposition to claim that, had one known, the result of an event could have been foreseen or expected.

Investment Plan

is a strategic approach to investing that outlines how an individual or organization will allocate resources across various assets to achieve financial goals.