Oligopoly firms face off in cutthroat competition, no joint agreements needed
The article discusses two ways to study oligopoly: cooperative and noncooperative. In a cooperative approach, firms work together to find the best outcome for all. In a noncooperative approach, each firm makes decisions on its own, considering the impact of rivals' choices. The Nash cooperative solution is an example of a method that combines both approaches. The debate between cooperative and noncooperative theories centers on the challenges of reaching joint agreements in oligopoly markets.