The "Preference-Based" vs. "Choice-Based" approach to decision making. Covers axioms of rationality, indifference sets, and the existence of utility functions.
When Apple decides to price a new iPhone, it isn't just looking at its own costs; it's predicting how Samsung will react. Advanced theory uses Nash Equilibrium and Subgame Perfection to map these interactions. 3. Information Economics (Asymmetric Info) The "Preference-Based" vs
Two firms (Duopoly) decide whether to set a high price or a low price. The "Preference-Based" vs