Game theory is important for the understanding of which type of markets
A)competitive markets
B)monopolies
C)oligopolies
D)foreign markets

Question

Quizplus · Accepted Answer

Game theory is particularly useful for understanding markets with a small number of dominant firms, otherwise known as oligopolies. In these markets, each firm's decision-making is interdependent, meaning the outcome for one firm depends on the decisions made by its competitors. Game theory provides a framework for analyzing how firms in these markets interact, strategize, and make decisions. While game theory can be used to analyze competitive and monopolistic markets as well, it is most commonly applied to oligopolies. Thus, the best choice is C) oligopolies.

Game Theory Is Important for the Understanding of Which Type