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oligop - OLIGOPOLY Market in which there are few firms so...

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Oligopoly slide 1 OLIGOPOLY Market in which there are few firms, so individual firms can affect market price. Interdependence of firms is an important characteristic. The demand curves for the individual firms are dependent on the pricing and marketing decisions of competitors. Strategy becomes important to firms in oligopoly.
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Oligopoly slide 2 Barriers to entry are an especially important part of oligopoly behavior: 1) Xerox and patents 2) Aluminum and control of bauxite deposits 3) Breakfast cereals ,beer, and economies of scale in advertising 4) Daily newspapers
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Oligopoly slide 3 Of the many different models of oligopoly, we will examine only two in class: 1) The collusion or cartel model. 2) Cooperation games based on the Prisoners' Dilemma.
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slide 4 CARTELS Cartels are usually illegal in the U.S. because of antitrust laws, but some industries and kinds of firms are exempt. In addition, some instances of cartel-like behavior may simply not have been prosecuted. Cartel is a form of collusion in which the member
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oligop - OLIGOPOLY Market in which there are few firms so...

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