Question

difference between cooperative and non cooperative oligopoly

Answer 1

I think a key difference is that in cooperative game theory, players can make binding agreements before playing the game, e.g. how to share pay-offs. In non-cooperative game theory, on the other hand, agreements are not binding. This translates to individual players being the cornerstone of NCGT, while CGT considers coalitions of players. Further along the line, equilibria are different, as the concept of a Nash equilibrium (no single agent can gain by unilaterally deviating) is not a very strong solution concept if a group of agents is able to gain by jointly changing their strategies. This last bit is, of course, only relevant if they can all agree on their strategies beforehand.

Note that in both cases, players are self-interested; cooperation does not imply selflessness.

Answer 2

Answer:

Cooperative: When firms mutually decide price and output or follow any agreement and doesnt compete with each other like Cartels. Non-Cooperative : Here firms dont have any agreement and compete with one another on prices to get more and more share in market