BackOne-Time Games and the Prisoner's Dilemma definitions
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1/14BackSkip to main contentBackOligopoly
Market structure with few firms, where each firm's decisions significantly affect competitors due to interdependence. Game Theory
Analytical framework for understanding strategic interactions where outcomes depend on choices made by multiple players. One-Time Game
Scenario played only once, with no opportunity for repeated interaction or future retaliation between participants. Prisoner's Dilemma
Situation illustrating how rational individuals may not cooperate, even when cooperation yields a better collective outcome. Payoff Matrix
Table summarizing possible outcomes for each player based on all combinations of their available choices. Dominant Strategy
Choice that provides the best outcome for a player, regardless of what the other participants decide. Nash Equilibrium
Outcome where all players select their best possible option given others' choices, resulting in no incentive to deviate. Collusion
Agreement among firms to coordinate actions, such as setting prices or quantities, often to increase collective profits. Cartel
Group of firms colluding to control market prices or output, typically illegal in many jurisdictions. Implicit Collusion
Unspoken coordination among firms, often through price leadership, without explicit agreements. Price Leadership
Situation where one firm sets a price and others follow, creating coordinated pricing without direct communication. Individual Profit
Personal gain achieved by a participant, often motivating deviation from cooperative agreements. Check and X Method
Systematic approach for identifying best responses and Nash equilibria in payoff matrices using visual markers. Interdependence
Condition where each participant's outcome is affected by the actions of others, central to strategic decision-making.
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