Lecture 1 Notes, Monopoly
The monopolist is the single supply-side of the market and has complete control
over the amount oered for sale; the monopolist controls price but must operate
along consumer demand.
Revenue in Monopoly
Review the r
Lecture 3 Notes, Monopsony
A monopsony is a market in which there is a single buyer. Typically, a monopsonist chooses to maximize the total value derived from buying the goods minus
the total expenditure on the goods: V (Q) E(Q).
Lecture 4 Notes, Pricing
Third Degree Price Discrimination
Third degree price discrimination is the practice of dividing consumers into two
or more groups with separate demand curves and charging dierent prices to
each group. Now maximize the prot:
Lecture 2 Notes, Price Regualtion
How does a monopolist allocate production between plants?
Suppose the rm produces quantity Q1 with cost C1 (Q1 ) for plant 1, and quantity Q2 with cost C2 (Q2 ) for plant 2. The total quantity is
QT = Q
Lecture 5 Notes, Tariffs
When there are two consumers. Consumer 1 has higher demand than consumer
2. If setting P = M C, consumer 1 consumes Q1 units and consumer 2 consumer
Q2 units. A1 is consumer 1s consumer surplus, and A2 is consumer
Lecture 6 Notes, Game Theory
In monopolistic competition market, there are many sellers, and the sellers do
not consider their opponents strategies; nonetheless, in oligopoly market, there
are a few sellers, and the sellers must consider the
Lecture 10 Notes, Labor Supply
Supply of Labor
Derive the supply of labor by solving consumers utility maximization problems.
Two variables determining the utility are leisure (L), which is measured by
hours, and income (Y ); the prices are w and 1 resp
Lecture 9 Notes, Labor Demand
Dominant Firm Model
The dominant rm model is the model that in some oligopolistic markets, one
large rm has a major share of total sales, and a group of smaller rms supplies
the remainder of the market. The large rm has pow
Lecture 8 Notes, Prisoners Dilemma
Collusion Prisoners Dilemma
Last time we talked about the prisoners dilemma. The conclusion is that they
will betray the other.
Now apply it to the cases of Cournot and Bertrand models.
In the Cournot model, the demand
Lecture 7 Notes, Oligopoly Models
Stackelberg model is an oligopoly model in which rms choose quantities sequentially.
if rm 1 pro-duces crispy and rm 2 produces sweet, the payo is if rm 1
produces sweet and rm 2 produces crispy, the payo is