Answer:
Step-by-step explanation:
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noncooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership.
To do this, identify the definition for each term from the following list.
1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others. Game theory
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use. Doninant strategy
6. A situation in which each firm chooses the best strategy, given the strategies chosen by other firms. Nash equilibrum
7. A game outcome in which players seek to increase their mutual payoff. Cooperative equilibrum
8. A game outcome in which players pursue their own self-interest. Non cooperative equilibrum
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry. Price leadership