11.8 Key Terms
Key Terms
pb_glossary id=”1462″]Sequential games[/pb_glossary]
means a group of firms that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price. 11.2
defines when firms act together in this way to reduce output and keep prices high. 11.2
is the strategy an individual (or firm) will pursue regardless of the other individual’s (or firm’s) decision. 11.3
each oligopolist must worry that while it is holding down output, other firms are taking advantage of the high price by raising output and earning higher profits. 11.4
is a branch of mathematics that analyzes situations in which players must make decisions and then receive payoffs based on what other players decide to do. 11.3
curve in which competing oligopoly firms commit to match price cuts, but not price increases. 11.5
when a government grants a patent for an invention to one firm. 11.1
is an outcome where, given the strategy choices of the other players, no individual player can obtain a higher payoff by altering their strategy choice. 11.3
arises when a small number of large firms have all or most of the sales in an industry. 11.1
are the outcomes associated with every possible strategic combination, for each player. 11.3
are the agents actively participating in the game and who will experience outcomes based on the play of all players. 11.3
is a scenario in which the gains from cooperation are larger than the rewards from pursuing self-interest. 11.3
are simultaneous move games played repeatedly by the same players. 11.3
are played once and then the game is over. 11.3
are all of the possible strategic choices available to each player, they can be the same for all players or different for each player. 11.3
