Game theory is most useful in understanding the decision making behavior of firms in which type of industry?

Question

Quizplus · Accepted Answer

Game theory is most useful in understanding the decision making behavior of firms in oligopoly industries because in oligopoly industries, few firms exist and their decisions directly affect the decisions of their rivals, leading to interdependent decision making. Game theory helps in analyzing such strategic interactions and predicting the outcomes of different strategies.

Game Theory Is Most Useful in Understanding the Decision Making