Examples of Strategic dominance in the following topics:
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- For both players, the choice to betray the partner by confessing has strategic dominance in this situation; it is the better strategy for each player regardless of what the other player does.
- Prisoner dilemma scenarios are difficult strategic choices, as any deviation from established competitive practice may result in less profits and/or market share.
- Betrayal in the dominant strategy for both players, as it provides for a better individual outcome regardless of what the other player does.
- Analyze the prisoner's dilemma using the concepts of strategic dominance, Pareto optimality, and Nash equilibria
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- Betraying the partner by confessing is the dominant strategy; it is the better strategy for each player regardless of how the other plays.
- A monopolized market has only one firm, and thus strategic interactions do not occur.
- In a prisoner's dilemma game, the dominant strategy for each player is to betray the other, even though cooperation would have led to a better collective outcome.
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- Microsoft, through the effective strategic design and sale of their operating platform, attained a monopolistic hold on the computer industry.
- Regulating against strategic actions that may result in diminishing the competitive elements of a market.
- This is usually targeted at dominate players in an industry, who may have a tendency to price gauge or other manipulations.
- Overseeing mergers, acquisitions, joint ventures and other strategic alliances to avoid consolidation that may be damaging to free markets.
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- Policy makers are viewed to interact as strategic substitutes when one policy maker's expansionary (contractionary) policies are countered by another policy maker's contractionary (expansionary) policies.
- If they behave as strategic complements,then an expansionary (contractionary) policy of one authority is met by expansionary (contractionary) policies of other.
- But when, the goals of one authority is made subservient to that of others, then the dominant authority solely dominates the policy making and no interaction worthy of analysis would arise.
- Fiscal conservatism was the dominant position until the Great Depression.
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- The most important barriers are economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy new entrants.
- Consequently, the industry is dominated by two firms.
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- Along similar lines, it is common practice for companies to identify strategic alliances abroad and send much of the production work to these locations.
- High tariffs will raise the cost for foreign producers to sell their goods in a domestic system, providing strategic advantages for local producers.
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- An oligopoly - a market dominated by a few sellers - is often able to maintain market power through increasing returns to scale.
- In an oligopoly market structure, a few large firms dominate the market, and each firm recognizes that every time it takes an action it will provoke a response among the other firms.
- Cell phone companies have increasing returns to scale, which leads to a market dominated by only a few firms.
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- Behavioral game theory: analyzes interactive strategic decisions and behavior using the methods of game theory, experimental economics, and experimental psychology.
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- Product differentiation is not necessary for the existence of an oligopoly, but if a firm can successfully engage in product differentiation it can more easily gain market power and dominate at least part of the industry.
- For example, the soft drink industry in the US is an oligopoly dominated by the Coca-Cola Company, the Dr.
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- Technology advanced rapidly, and without strategic alliances on a global scale, Brazil largely missed out on these advances.