An Agreement Between Two Duopolists To Function As A Monopolist

oligopolists gain the most by cooperating and behaving like a monopoly. Mergers occur when large companies dissolve and merge into a large company, which excludes competition (Kamien and Schwartz 54). The difference between oil. c. The strategic decisions faced by prisoners are identical to those of companies entering into competition agreements. Unlike monopolies and competitive markets, oligopolies` prices do not exceed their marginal incomes b. They reveal the fundamental difficulty of maintaining cooperation agreements. [MUSIC] The dominant philosophy in game theory is that you choose your strategy by asking what is most useful. Suppose your rival analyzes your strategy and acts in their own interest.