Noncooperative game – Game in which negotiation and enforcement of binding contracts are not possible.
Payoff matrix – Table showing profit (or payoff) to each firm given its decision and the decision of its competitor.
Prisoners’ dilemma – Game theory example in which two prisoners must decide separately whether to confess to a crime; if a prisoner confesses, he will receive a lighter sentence and his accomplice will receive a heavier one, but if neither confesses, sentences will be lighter than if both confess.
