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In: Economics

A firm that is in an oligopoly market will try to attain the benefits (for them)...

A firm that is in an oligopoly market will try to attain the benefits (for them) of acting like a monopoly by colluding with the other firms in the market and forming a cartel. However, these can break down to the point where the market is more similar to a competitive market. Explain why these agreements often break apart (be sure to include explanation of the Nash equilibrium and Dominate Strategy).

Why does an oligopoly market not just become a competitive market?

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Rahul Sunny answered 6 months ago
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