Strategic behavior and game theory are features of which market structure?
A) perfect competition
B) monopoly
C) monopolistic competition
D) oligopoly

Question

Quizplus · Accepted Answer

Strategic behavior and game theory are features of oligopoly market structure where a few dominant firms compete in the market. In such a market, firms engage in strategic behavior such as collusion, price leadership, or price wars, which are analyzed using game theory. Perfect competition is characterized by many small firms with no market power, while monopoly and monopolistic competition have a single dominant firm and many small firms, respectively, but strategic behavior and game theory are not as prevalent.

Strategic Behavior and Game Theory Are Features of Which Market