Game theory can most effectively be used to postulate behavior in ________ markets.

Question

Quizplus · Accepted Answer

Game theory is most useful in predicting the behavior of firms in oligopolistic markets, where a small number of firms dominate the market and have interdependent decision-making. The actions of one firm directly affect the profits and strategies of its competitors, making game theory a valuable tool for predicting outcomes and making strategic decisions.

Game Theory Can Most Effectively Be Used to Postulate Behavior