According to game theorists, a cartel of several firms is an example of a(n)
A) zero-sum game.
B) uncooperative game.
C) cooperative game.
D) noncooperative game.

Question

Quizplus · Accepted Answer

A cartel involves several firms working together to control the market and increase profits, which is an example of a cooperative game. In a cooperative game, the players (in this case, the firms) work together to achieve a common goal, whereas in a noncooperative game, each player acts independently and tries to maximize their individual payoff. A zero-sum game is one where the total payoff for all players is constant, meaning that any gain by one player results in an equal loss by another player. An uncooperative game refers to any game where the players do not cooperate, but this term is not specific enough to describe the situation of a cartel.

According to Game Theorists, a Cartel of Several Firms Is