What is "game theory"?
What will be an ideal response?
A formal mathematical approach to examining the strategies used by individuals to make decisions when they know that their actions will affect the decisions of other individuals, and the other individuals take this into account in their decision making. It is particularly useful in analyzing business decision making in oligopolistic markets where firms are mutually interdependent.
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What are the differences between the four market structures in terms of the number of sellers in the market and the types of products produced?
What will be an ideal response?
Economists use the term shocks to mean
A) unexpected government actions that affect the economy. B) typically unpredictable forces that have major impacts on the economy. C) sudden rises in oil prices. D) the business cycle.