In an oligopolistic market, firms always pursue their own dominant strategy, leading to outcomes that maximize their individual payoffs without considering the impact on competitors.

In an oligopolistic market, a few large firms control most of the market share, and their decisions can greatly affect one another. When these firms act in their own self-interest, they often choose strategies that maximize their own profits without thinking about how their actions will impact competitors. This is where game theory comes in, as it helps explain how firms anticipate each other's moves. For example, if one company lowers its prices to attract more customers, other companies might feel pressured to do the same, leading to a price war that can hurt all of them in the long run. Ultimately, while each firm is trying to maximize its own payoff, the collective outcome can lead to less profit for everyone involved.