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Why Do Economists Refer to the Pricing Strategies of Oligopoly

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


Definitions:

Size Constancy

The perception of an object as having a constant size, despite changes in the distance from which it is viewed.

Retinal Image

The image projected on the retina, the light-sensitive layer at the back of the eye, which is crucial for visual perception.

Galloping

A fast gait of a quadruped in which each foot touches the ground separately in a sequence.

Perceived Size

An individual's subjective assessment of the dimension or magnitude of an object, which can be influenced by context or surrounding stimuli.

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