Oligopoly

Oligopoly is a when a few sellers dominate the market. They offer similar or identical products. Later it becomes a game theory situation, where players decide to cooperate with each other or to compete. Players will be better off if they compete in the short period and cooperate on the long period. Based on the game theory, prisoner's dillema appears. It is a game between two firms or people, and they choose to compete or cooperate. When prisoner's dillema occurs, players choose their dominant strategy which is the best strategy for each player regardless of the chosen strategy of other players. Oligopoly is a difficult thing especially when players start to play a game.