The oligopoly market is a market where there is only a few large corporations which control the entire market. New corporations will come along from time to time however entry into this market is expensive and competition is very fierce. The well established firms have the advantage of substantial funds as well benefit from the falling average costs for the products. Now with the oligopoly market the pricing of items are a delicate balance. With there being only a few corporations if one tries to under cut the competition the competition will respond with under cuttings as well and a price war shall begin. If your corporation chooses to have your price higher than the going market you will cut yourself off from the consumer. The price for products in the oligopoly market are much more set than the flexibility of monopolistic market.
Game theory was devised by watching a group of poker players. Poker players are out for their own self interest and are continually watch the other players and trying to anticipate the moves that the other players will make, and then adjust their moves accordingly. However when this theory was tested on individuals it proved to not be the case. People wanted to believe the best of other individuals and have faith in them.
A cartel is a group of sellers acting in unison. Whether it be that the cartel decided to set a selling price for products, or whether they decide to have a supply maximum that each with bring to market. The cartel decided on a fact and they all agree and the consumer is left with no choices. Collusive is when the corporation get together and decided how they are going to split up a market place and put controls in place to do so. This type of business dealing in illegal all over the world however this does not stop large companies from engaging in this type of behaviour.
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