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Nash Equilibrium in Oligopoly Market
In the context of oligopoly markets, the Nash equilibrium is an equilibrium defined by the characteristic that none of the oligopolists can increase its profits by unilaterally changing its pricing strategy.
Conditions in oligopolistic industries encourage collusion. If A agrees to share at least 51 of its 500 when both companies are charging high prices, B should also be willing to charge high prices.
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