The most widely used approach for the analysis of oligopoly behavior is
A)game theory.
B)role-playing.
C)strategic engineering.
D)input-output analysis.

Question

Quizplus · Accepted Answer

Game theory is specifically developed to analyze the behavior of firms in an oligopoly market structure. It helps to understand the strategic interaction between firms and their decision-making processes in terms of pricing, advertising, and other marketing strategies. Role-playing and strategic engineering are not as commonly used as game theory in analyzing oligopoly behavior. Input-output analysis is a method for determining the economic impact of a change in one industry upon other industries, and hence, is not directly related to oligopoly behavior analysis.

The Most Widely Used Approach for the Analysis of Oligopoly