Question: What are the unique characteristics of oligopoly?
The unique characteristics of an oligopoly would be: an industry dominated by a small number of large firms, an industry that has large barriers to enter, and the firms sell either identical or differentiated products.

How is game theory used to model oligopoly behavior?
Game theory can be used to model oligopoly behavior by different scenarios that can happen in an industry that is an oligopoly. For instances in game theory each firm is looking for the best possible outcome for themselves. Some might try to change prices to influence the market to get an advantage although it may be short. Some firms my have an unexpressed understanding on prices in the market. Some might have an incentive to cheat on any unexpressed understanding in order to get ahead.

What are the types of games and how they are played?
Dominant strategy is a strategy that no matter the actions or choices other do you have the highest payoff.
Nash Equilibrium is a set of strategies where everyone chooses their best strategy according to how others choose theirs.
Chicken is a strategy when two opposing firms, or anything, go head to head until someone steps out of the way, if no one steps out the worst outcome occurs for both.
There are many types of games for game theory. These were just a few.

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