c) Mutual Interdependence: This assumption is based on the relationship between two or more individuals where one person depends upon the other for economic interest or benefit. When making a decision one has to consider the effect of his or her decision to the partner. This is common in the Perfect competition -- pure market phenomenon. With the assumptions above the game theory helps in developing a perfect competition among the

Exxon Mobile and Game Theory Analysis ExxonMobil is the world's largest publicly traded international oil and gas company that operates in an industry that is dominated by several large firms (Exxonmobil, N.d.). On the international level, there are barriers to entry that make it difficult for new entrants to emerge, the product is considered a commodity, and as a result many have argued that this industry most likely follows the oligopoly

Economics Game Theory Game theory is a model that can be used to examine and explain the way that different actors in a given situation may choose to act and develop strategy, using a mathematic approach. The model looks at how players will make decisions which will be based on both the firms own position and resources as well as the way their competitors are or are expected to act. Game theory

Going to jail takes you out of the economic system. In the real world, this is usually to one's financial detriment, but not necessarily so in the game. Comparing the game and real world versions of the monopoly concept, they are similar. In the real world, a monopoly can occur when an owner has exclusive rights over a resource. The color blocks are not considered monopolized until one person owns

The red line denotes marginal cost and this also increases as the production increases. The shaded region is the profits of the firm. The price line is also the marginal revenue and the average revenue for the firm. So, the company earns profit only when marginal cost is less than the marginal revenue (the area denoted by the shaded portion). When marginal cost increases more than the marginal revenue,

Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly The subject of competition is an interesting one. The general idea in economics seems to be, the more competition the better. "Good competition" results in a greater likelihood in overall efficiency and low prices. There are several main types of competition, these include, perfect competition, the most competitive market possible (and, presumably, the one of greatest value to the consumer), monopoly, the least competitive