A duopoly has a very different game theoretic equilibrium than a triopoly.
- A duopoly has a very different game theoretic equilibrium than a triopoly.
- A duopoly is effectively like a monopoly.[hq]
- Both competitors position their policies right next to each other.
- Like the famous Hotelling's Law where businesses on a line place next to each other.
- The appearance of competition without actual variance.
- But a triopoly is different, there's always an odd man out.
- That odd man out is incentivized to do different plays that the stronger players wouldn't.
- That changes the dynamic so the bigger players have to compete, too.