Principles of Microeconomics — Part 6: Oligopoly & Game Theory

When a market has only a few firms, each firm's best move depends on what its rivals do. That's the heart of game theory. You'll learn to read payoff matrices, find best responses, identify dominant strategies, and locate Nash equilibria. The centerpiece is the prisoner's dilemma — the model that explains why cartels are unstable, why arms races happen, and why cooperation is hard even when it's in everyone's interest. By the end, you'll have the vocabulary to analyze any strategic interaction,