Ch-2. 17 Oligopoly

Ch-2. 17 Oligopoly - Chapter 17 Oligopoly Spectrum of...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 17 Oligopoly Spectrum of Market Structures Spectrum of Market Structures Oligopoly Oligopoly , like monopolistic competition, falls in between perfect competition and monopoly on the spectrums of competition and concentration. Firms in an oligopoly face some competition.but not as much as competitive markets or monopolistically competitive markets. Oligopoly Oligopoly is unlike monopolistic competition in that sellers might offer either differentiated or identical products. Oligopoly is unlike monopolistic competition in that entry barriers are likely to be an important part of the market structure and thus are more likely to earn positive economic profits in the long run. Oligopoly Oligopoly is like our analysis of advertising; outcomes can be efficient, good for society, but not necessarily. Important difference between oligopoly and monopolistic competition: firms decisions are interdependent instead of independent. Game Theory Game theory is the study of how people behave in strategic situations. By strategic situations we mean situations in which a person, when choosing among alternative courses of action, must consider how others might respond to the action he takes. Game theory study of interdependence Types of Games Simultaneous move games Rock paper scissors (Rochambeau) Firms decide simultaneously whether they...
View Full Document

This note was uploaded on 12/30/2011 for the course ECON Econ 200 taught by Professor Clement during the Fall '11 term at Maryland.

Page1 / 33

Ch-2. 17 Oligopoly - Chapter 17 Oligopoly Spectrum of...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online