Oligopoly pricing refers to the pricing strategies used by firms in an oligopoly market structure, where a few companies dominate the market and have significant control over price setting. In this setting, firms must consider the potential reactions of their competitors when making pricing decisions, leading to the use of mixed strategies where firms sometimes alternate between competitive and cooperative pricing to maximize profits while minimizing risks. This creates a complex interaction among firms as they navigate their choices in response to one another's actions.
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