When Analyzing the Behavior of Oligopolists,which of the Following Is

question 44

Multiple Choice

When analyzing the behavior of oligopolists,which of the following is crucial for the success of game theoretic analysis?

• A) Payoffs do not need to reflect the true payoffs of the oligopolists, they just need to be greater than or equal to zero.
• B) Assume that oligopolists always move simultaneously.
• C) Do not construct the payoffs of the oligopolists to be interdependent, as the payoff of one player usually does not affect the payoff of the other players.
• D) Make sure the problem you are considering is of a one-shot or repeated nature, and you model it accordingly because the order in which players make decisions is important.

---

Definitions:

Bargaining Impasse

A deadlock in negotiations between parties, typically between employers and labor unions, where no agreement can be reached.

Interest Dispute

A disagreement between labor and management over the terms and conditions of employment, including wages, working hours, and other aspects of a job.

Seniority Based

A system or process where priority, preference, or decisions are made based on the length of time an individual has held a position or been part of an organization.

Management Decision

Actions or resolution made by business leaders or managers concerning the strategic operation, personnel, or policies of a company.