Consider a home seller and buyer in terms of a game in form. Suppose the buyer either makes an offer or not, then the seller can respond by rejecting the offer, accepting it, or asking for a higher price. Draw it out, and create your own set of payoffs (it can be in dollars). Is there a stable equilibrium?
you need to create a game theory matrix and you need to figure out what goes in the cells and then explain it.
The key feature of Oligopoly is that there is no single model of Oligopoly. There are multiple models used, but one of the most common ways to analyze Oligopoly is Game Theory.
CrashCourse video on Game Theory and Oligopoly
Jacob Clifford on the Game Theory of Superhero movies
Sample Solution
