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Chapter 26: Q. 2 - Critical Thinking Questions (page 594)

Why do you suppose that a handful of large firms have become predominant in the market for multiplayer electronic games, in which network effects are particularly important?

Short Answer

Expert verified

Theprisoner's dilemma is a situationwhere decisions are made in anticipation of otherplayers' decisions.

Step by step solution

01

Given information 

The given information are :

Pre-dominant in the market for multiplayer electronic qames .

02

Explanation (1)

Theprisoner's dilemma is a situationwhere decisions are made in anticipation of otherplayers' decisions. This is inefficient because thedecisions of others orplayers are unknown andtherefore efficiency cannot be achieved. This is thedifference between professionaladministrative communication andnon-communication assumptions.

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