Economics
Game Theory and Oligopoly Pricing Strategies
Quick fact
In a classic oligopoly pricing game, the Nash equilibrium can be worse for both firms than if they cooperated, but each firm still chooses it because it's the safest response to the other's likely behavior.
Why this is interesting
Ever wonder why airlines often match each other's fare changes almost instantly? In a market with just a few big players, pricing becomes a strategic game where every move depends on what rivals might do.