Chapter 27 - Oligopoly and Strategic Behavior

Nash equilibrium

The ________ is an outcome of.

entry

When there is no threat of ________, Mona uses the marginal principle to pick a quantity and a price.

duopolists dilemma

A(n) ________ is a situation in which both firms in a key would be better off if both chose the high price, but each chooses the low price.

Game theory

________ is the study of decision- making in strategic situations.

Oligopoly

________ is a market served by a few firms.

Duopoly

________ is a market with two firms.

game tree

A(n) ________ is a graphical representation of the consequences of different actions in a strategic setting.

Concentration ratios

________ are the percentage of the market output produced by the largest firms.

Limit pricing

________ is the strategy of reducing the price to deter entry.

dominant strategy

A(n) ________ is an action that is best chosen for a player, no matter what the other player does.

payoff matrix

A(n) ________ is a matrix or table that shows, for the possible outcomes of a game, the consequences for each player.

small increase

The advertisers dilemma occurs when advertising causes a relatively ________ in the total sales of the industry but allows a firm that advertises gain at the expense of firms that dont.

duopolists' dilemma

The ________ occurs because the two firms are unable to coordinate their pricing decisions and act as one.