Economists have come to rely on game theory as the primary tool for analyizing oligopoly behavoir. Even though the name suggests a method of understanding recreational competitive activities, game theory is in fact a sophisticated method of analyizing strategic behavior. The methods of game theory are used in many disciplines including economics, political science, biology, psychology, business, military science and sociology.
Game theory is also a branch of mathematics, but don't let that concern you. The game theory we will use here is quite simple and will be fairly easy to follow, but keep in mind that it is a large field and we will only be able to glimpse a little of how it is used in economics in the study of oligopoly.
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