Economists use game theory to analyze oligopolies because

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Game theory is useful in analyzing oligopolies because it helps us understand the strategic interactions among firms and how these interactions affect their profitability. In an oligopoly, each firm's profits depend not only on its own actions but also on the actions of its competitors. Game theory provides a framework for modeling these interactions and predicting the outcomes of different strategies. By using game theory, economists can gain insights into the behavior of firms in real-world markets and develop better strategies for managing competition.

Economists Use Game Theory to Analyze Oligopolies Because