In Oligopoli, manufacturers must take into account the reaction of the competitors when they choose the level of output and prices.
The market equilibrium:
The companies are free to choose the strategies that best benefit them and therefore have no incentive to change business decisions on output and prices. The companies when making decisions must anticipate the reaction of competitors.
Balancing Nash: each company chooses the best strategy in terms they already know the actions of competitors.
War dominant strategy: each company will make the best decisions for themselves regardless of the actions of competitors.
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