In Game Theory, If Two Rivals in an Oligopoly Can

question 153

Multiple Choice

In game theory, if two rivals in an oligopoly can avoid a large loss by cutting price from $40 to $35,

• A)neither will cut its price
• B)one will charge $40 and the other will charge $35
• C)their actions will depend on their respective strategies
• D)each will cut price but not all the way to $35
• E)they will collude to do what's best for both of them

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