If a firm in an oligopoly consistently chooses to lower its prices regardless of competitors' actions, which of the following best explains this behavior?

In an oligopoly, firms are interdependent, meaning the actions of one firm can significantly affect others. If a firm consistently lowers its prices without considering what competitors do, it might be following a dominant strategy, which is a choice that leads to the best outcome for the firm regardless of what others do. For example, if Firm A lowers its price, it may attract more customers, even if Firm B keeps its price the same. However, this could lead to a price war where all firms lower their prices, ultimately reducing profits for everyone. Thus, the firm might believe that lowering prices is the best way to gain market share, even if it risks provoking similar actions from competitors.