A Payoff matrix may be used to illustrate why a aggressive oligopoly has a tendency to result in a low-fee method that doesn't maximize mutual income.
A payoff matrix is a manner to specific the result of gamers' choices in a recreation. A payoff matrix does no longer express the shape of a sport, such as though players take turns taking moves or a player has to make a preference without understanding what desire the alternative will make.
Recreation idea offers with any scenario is which the praise to any one participant – the payoff – depends no longer handiest on her own moves however additionally on the ones of different players in the game. in the case of oligopolistic firms, the payoff is absolutely the firm's income.
A payoff matrix is a device this is used to simplify all of the possible consequences of a strategic choice. it is a visible representation of all the viable techniques and all the viable consequences.
Learn more about payoff matrix here: https://brainly.com/question/22717652
#SPJ4
