The dominant strategy for an oligopolist is to cooperate with the group and maintain low production regardless of what the other oligopolists do.

Question

Quizplus · Accepted Answer

The dominant strategy for an oligopolist is to be competitive and maximize their own profits, which may involve producing at high levels and undercutting their rivals. Cooperation may lead to higher profits for the group as a whole, but there is always a risk that one member will defect and produce at a higher level, leading to an overall reduction in profits. Therefore, the dominant strategy for an oligopolist is to be competitive, not cooperative.

The Dominant Strategy for an Oligopolist Is to Cooperate with the Group