Pricing strategy of Oligopoly market.
Concept Introduction:
Oligopoly Market: An oligopoly market structure is a market where a few firms sell similar but differentiated products. But the special feature is that only a few firms hold the major market share. Oligopoly markets are said to be highly concentrated. They dominate the pricing strategy. They are the market leaders. Others are the followers.
Game Theory: Game theory studies the strategic decision making process among different rational entities. Every decision making is dependent on the anticipated reaction of the rival (the entity effected by the decision). In economics, Game theory is used to anticipate the optimal decision making an imperfect market situation.
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