Dominant Strategy : Nash Equilibrium :: Oligopoly : ?

In game theory, a dominant strategy is when a player has one best choice, regardless of what the other players do, while a Nash Equilibrium is a situation where no player can benefit by changing their strategy if others keep theirs unchanged. In the context of oligopoly, which is a market structure with a few firms that dominate, the concept that relates to these terms is "collusion. " Collusion occurs when firms work together to set prices or output levels to maximize their collective profits, similar to how players might coordinate their strategies to reach a Nash Equilibrium. For example, if two companies decide to keep their prices high instead of competing by lowering them, they can both benefit from higher profits, just like players in a Nash Equilibrium. Thus, while a dominant strategy focuses on individual choices, collusion in an oligopoly emphasizes how firms can cooperate for mutual benefit.