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- 3. When using game theory, some companies may have a ___ ___ , which is the choice they must make, regardless of what their competitors do.
- 4. Marvel has no dominant strategy, because their action will depend upon ___ DC ___ to do. Marvel must react based upon their competitors actions.
- 6. 2016, Sprint, T-Mobile, Verizon, & AT&T were the dominant ___ ___ companies in the U.S., making the market an oligopoly.
- 7. A company in an oligopoly has a dominant strategy when the profit ___ give them no reason to make any other decision, regardless of competitors actions.
- 12. The soda pop industry includes only a few large producers, like Pepsi & Coke, so it is considered to be a ___ .
- 14. ___ ___ is the opposite of dominant strategy. It is what happens after a company considers the action of its competitor, in order to maximize profit.
- 15. Since the companies in an oligopoly produce similar products, & are competing for the same customers, they will sometimes ___ ___ from each other.
- 16. If is best for both prisoners to deny & get 10 years, but they must consider what the ___ ___ is going to do, so they will both confess to avoid the 30 years.
- 18. If prisoner 1 confesses & prisoner 2 denies, prisoner 1 will ___ ___ & prisoner 2 gets ___ ___ . Since denying leads to the worst outcome, both will confess.
- 19. Since there are only a few companies that produce soft drinks, they are ___ , which means the actions of 1 company directly affects the other companies.
- 20. 2 criminals are jailed in separate cells for the same crime. Their decision to plead guilty or innocent is an example of game theory, called the ___ dilemma.
Down
- 1. It is best for the prisoners to both deny, so they get ___ ___ , or both confess, which is ___ ___ . But they don’t know what the other will do.
- 2. In addition to soft drinks, airplane, & car manufacturers, the ___ ___ industry is also an oligopoly. Two of these companies produce about ⅓ of all [same].
- 5. Sprint might want to raise phone prices. But if they do, customers will go to the other 3 suppliers, proving that ___ will make sure prices stay low.
- 8. 2 prisoners and 2 choices leads to 4 total outcomes, which can be displayed in a game theory ___ .
- 9. ___ takes place when companies in an oligopoly get together & raise prices artificially, removing competition.
- 10. When companies in an oligopoly get together & raise prices artificially, this is collusion. In the U.S., collusion is ___ , since it removes competition & discourages buying.
- 11. Having only a few companies in an oligopoly means those companies must study the strategies of their competitors, using ___ ___ .
- 13. A ___ ___ companies control all comic book production in the industry, so this makes the comic book market an oligopoly.
- 17. Most companies in an oligopoly do not use game theory to analyze prisoners’ decisions. They use game theory to predict their ___ , depending on what their competitors do.