Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
A)monopolistic competition.
B)game theory.
C)predatory pricing.
D)a dominant strategy.

Question

Quizplus · Accepted Answer

The behavior described in the scenario is an example of game theory, which is a discipline that models the strategic interaction between individuals or groups. In this case, the two players are making a strategic agreement to work together to eliminate their competition at the table.

Suppose That Two Poker Players Believe That They Are Superior