Game theory is the act of analyzing firm behavior that highlighrs mutual interdependence among firms. It was developed by John Neumann & Oscar Morgenstern. They came up with the idea to analyze strategic behavior. The payoff matrix is the figure of the outcome of if Aman and Omar keeps their aggreement for trade. It also shows the possibilities of what would happen if one of them cheat and the result for the other party. Cartel is where sellers act in unison.
Source: Textbook, Chapter 11 (pages 387-394)
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