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While playing this simulation, I tried to remember that oligopolies tend to profit better when they work together and for a cartel. The only problem
While playing this simulation, I tried to remember that oligopolies tend to profit better when they work together and for a cartel. The only problem with this thinking was there was no way to communicate with the other players to ensure that we were all on the same page and producing the same amount to maximize profit. I tried several different production points throughout the simulation and ultimately found that if I stayed around 6 barrels produced, I tended to profit more than when I would produce more or less. The main feature of an oligopolistic market is for the firms inside the market to work together creating a cartel in order to set prices and maximize total profit for all firms within the cartel. With antitrust laws and regulations, firms cannot talk to each other about pricing, but if they look at the market and understand production levels and total profit, they could make a conclusion as to what the Nash equilibrium would be and set output in accordance with Nash equilibrium. Oligopolies set their prices in accordance with maximum profit, sometimes this can be done through colluding with other firms or following other firms' pricing. In an oligopoly
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