game theory is the study of the behavior of group of answer choices monopolists. price-takers interdependent firms. monopolistically competitive firms. all firms with market power.

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08-11-2022
Business

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game theory is the study of the behavior of group of answer choices monopolists. price-takers interdependent firms. monopolistically competitive firms. all firms with market power.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-11-10T21:54:56-05:00

Game theory is the study of the behavior of all firms with market power. The study of how people make decisions in situations where their success is dependent on their interactions with others; in economics.

The study of business decisions in industries where a firm's earnings are dependent on its interactions with other firms. Game theory is a mathematical approach to modelling behavior that examines the strategic decisions behavior of interacting parties. In classic experimental economics, game theory is based on the assumption of homo economics - a self-interested, rational maximizer. Agents produce results with respect to those agents' preferences (or utilities), even when none of the agents anticipated the outcomes in issue.

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