Game theory has a definition of being a method of analyzing firm behavior that highlights mutual interdependence among firms. game theory has been used since as early as the early 1900's. It can be traced back to the western times when card counting became a benefit to poker players where it can help a player guess what cards may still be in the deck and what other players may have in their hand.
Game theory is also used in everyday life and can be as used as a group of friends deciding on where to go for dinner, or as complicated as a big player in the fast food industry taking out little, small "ma and pop" type restaurants.
Collusion is an attempt to suppress the competition and a cartel is a group of firms who agree explicitly to coordinate their activities to raise the market price or decrease the market output, creating more demand and profits. These actions are nor morally right but also have implications in a legal responsibility.
No comments:
Post a Comment