Game theory is especially useful for analysis in the following markets:
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question

Quizplus · Accepted Answer

Game theory is particularly useful for analyzing strategic decision-making in oligopoly markets, where a small number of large firms interact with each other, taking into account the potential reactions of their competitors. In contrast, perfect competition and monopolistic competition markets involve a large number of small firms where there is no individual firm's influence on the market. In a monopoly, there is only one firm in the market, making game theory less useful as there is no competition to consider.

Game Theory Is Especially Useful for Analysis in the Following