Across
- 2. Matrix shows possible combination of outcomes
- 3. Equilibrium game theory outcome that occurs when both players choose the action that is the best for them given the action of the other players and reach the same payoff
- 5. when firms act together to reduce output and keep prices high
- 8. demand curve a perceived demand curve that arises when competing oligopoly firms commit to match price cuts, but not price increases
- 9. dilemma a game in which the gains from cooperation are larger than the rewards from pursuing self-interest
- 11. an oligopoly with only two firms
- 12. competitive payoffs based on what decisions the other players make firms and organizations that fall between the extremes of monopoly and perfect competition
Down
- 1. competition many firms competing to sell similar but differentiated products
- 2. dilemma it shows how, in certain situations, all sides can benefit from cooperative behavior rather than self-interested behavior.
- 4. product- a product that is perceived by consumers as distinctive in some way
- 6. when a few large firms have all or most of the sales in an industry
- 7. a group of firms that collude to produce the monopoly output and sell at the monopoly price
- 10. Theory a branch of mathematics often used by economists that analyzes situations in which players must make decisions and then receive