A cooperative game is
A) companies colluding in order to make higher than competitive rates of return.
B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry.
C) a game in which firms will not negotiate in any way.
D) when plans made by firms are known as game strategies.

Question

Quizplus · Accepted Answer

A cooperative game is when companies collude or work together in order to make higher profits. This is seen as a strategy in game theory, where players (in this case, firms) aim to maximize their joint payoff through cooperative behavior.

A Cooperative Game Is