Economists are more likely to use game theory to analyze a(n):
A) competitive market.
B) monopoly.
C) monopolistically competitive market.
D) oligopoly.
E) monopsony (single buyer).

Question

Quizplus · Accepted Answer

Game theory is particularly useful in analyzing oligopolies, which are markets dominated by a few large firms that can influence prices and output decisions. In such markets, firms often engage in strategic behavior, and game theory provides a framework for understanding how they interact and make decisions. Game theory can also be applied to other market structures, but its usefulness is particularly pronounced in the study of oligopolies.

Economists Are More Likely to Use Game Theory to Analyze