Often, oligopolists act without the benefit of communication. As a result they choose strategies that lead to lower profits than what could have been achieved with cooperation. This situation is known as:
A)the minimax strategy.
B)the collusion outcome.
C)the prisoner's dilemma.
D)a compromise.

Question

Quizplus · Accepted Answer

The situation described refers to the prisoner's dilemma, in which each oligopolist chooses an individual strategy without consideration for the optimal outcome that could be reached through cooperation.

Often, Oligopolists Act Without the Benefit of Communication