Oligopolists make decisions after taking into account the expected reaction of their competitors. In doing this, oligopolists are exhibiting

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Oligopolists exhibit strategic behavior by considering the expected reaction of their competitors before making any decision. This is because their actions affect each other, and they need to take this into account to maximize their own profits. Collusive behavior involves explicit agreements among competitors to coordinate their decisions, while cooperative behavior involves working together to achieve common goals. Non-cooperative behavior implies that each firm makes decisions independently, without considering the actions of their competitors. Non-strategic behavior implies a lack of consideration for the long-term consequences of their decisions.

Oligopolists Make Decisions After Taking into Account the Expected Reaction