The Importance of Monopoly Style Impacts

A lot of oligopolists have monopoly style impacts because of their ability to raise prices. They're able to do this via what's known as tacit collusion can you explain that to us? I go into why it is that four players might behave the same way that one player behaves and in economics there's a field called Game Theory Game Theory basically looks at how two or more players might interact with each other. The classic is prisoners dilemma so when you start playing it many times then cooperation starts emerging. You realize that your partner might not be a very good person and you might then incentivize to rat on him right.