- Category: Microeconomics
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Before we go on to the other market forms, oligopoly and monopolistic competition, we will introduce a tool called game theory. Game theory is a much younger tool than most of the others we have discussed so far and has become a large field of research. Here, we will just present two different games.
These will get to represent the two different groups of games: normal form games and extensive form games. We will later use these tools in the analysis of oligopolies.