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Posted: December 16th, 2022
You may have noticed the discussion in Taylor (2014) at the end of Chapter 10 about oligopoly and the prisoner’s dilemma. The prisoner’s dilemma is an example of game theory. A “game” is like a board game, as your optimal move depends on what your opponent does. The same holds in oligopoly, as your own decisions as to what price to charge or how much to produce depend on what your competitors do.
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Take a look at the following video that tries to illustrate oligopoly and game theory Clifford, Jacob. (April 27, 2014). Oligopolies and Game Theory- EconMovies #8: The Dark Knight. https://www.youtube.com/watch?v=JMq059SAQXM
Find one other YouTube video on game theory and share the link with your classmates. Then discuss the following issues:
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