Duopoly, game theory, Nash equilibrium and collusion

What this note covers

1. Interdependence and the logic of duopoly
2. Reading a payoff matrix
3. Dominant strategy and Nash equilibrium
4. Collusion and the incentive to cheat
5. Worked example: SkyLoop and AeroNest choose a fare
6. What keeps collusion stable or breaks it down
7. How duopoly and game theory are examined and what separates a top response

7 sections · 12 key terms & formulas · 6 common mistakes