This statement is true.
In a market with a small number of sellers, known as an oligopoly, each seller's decisions have an impact on the outcomes of the other sellers.
Although there isn't a single theory to explain oligopoly, economists will occasionally employ a model known as the prisoner's dilemma to explain how oligopolistic market outcomes arise.
The prisoner's dilemma is a "game" that illustrates the advantages and dangers of cross-pollination among oligopolistic businesses.
A Nash equilibrium results from a prisoner's dilemma, where each player performs the best they can given what the other players are doing.
Oligopolist businesses frequently face the prisoners' dilemma, where they must choose between engaging in aggressive market-capture competition at the detriment of their rivals or engaging in "cooperation" and coexisting with the rival with the market share they already control.
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