ECO380 Markets, Competition, and Strategy, Fall 2014
Problem Set #3
Problem 1. TomsonBook is the monopoly publisher which produces the textbook
Corporate Economics. TomsonBook sells in two separate markets, domestic market
and international market. The in
ECO380 Markets, Competition, and Strategy, Fall 2014
Problem Set #2
Problem 1. Two independent ice cream vendors own stands at either end of a 2
mile long beach. Everyday there are 200 beach-goers who come to the beach and
distribute themselves uniformly
ECO380 Markets, Competition, and Strategy, Fall 2014
Answer key for Problem Set #1
Problem 1. Suppose that, in a large city, 200 identical street vendors compete in a
competitive market for hot dogs.
1. The vendors total costs to produce q hot dogs is, C(
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UNIVERSITY OF TORONTO
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UNIVERSITY OF TORONTO
Faculty of Arts and Science
ECO 380 F (Markets, Competition, and Strategy)
Instructor: Zhe Yuan
Midterm Do
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ECO380 Review Package
Introduction to competition and strategy
Cournot Model
Bertrand Model
Hotelling Model
Stackelberg Model
Predation in Stackelberg
Collusion and cartels
Price discrimination
Bundling and Tie-in
Vertical Merger
Easy 4.0 Education Inc.
1
TERM TEST 1 SOLUTIONS
Question 1: [15 minutes] A monopolist faces demand of p(q) that is decreasing in quantity q and
has cost function C (q) = cq where c > 0. Note that demand is not necessarily linear.
(a) [2 points] Write out the monopolists maximizati
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ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
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Term Test
Problem 1. Answer the following questions as best you can based on what you have
learned from the course. Partial answers will receive partial credit.
1. What is
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UNIVERSITY OF TORONTO
Faculty of Arts and Science
ECO 380 F (Markets, Competition, and Strategy)
Instructor: Zhe Yuan
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ECO380: Final Exam (December 2013)
UNIVERSITY OF TORONTO
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DECEMBER 2013 EXAMINATIONS
ECO380H1F, Section L5101, Session 20139
Instructor: Yao Luo
Duration - 3 hours
Non-Programmable
Dynamic Games Intro
Stackelberg Model
Sequential Price Setting Models
Low Price Guarantees
Dynamic Games and the Stackelberg Model
Yao Luo
ECO380 - University of Toronto
1. p-c /p = 1/n monopoly
market power
n= (change in Q / Q) / (change in P/ P)
2. cons
Finite Horizon Games
Innite Horizon Games
Collusion in Practice
Repeated Games and Price-Fixing
Yao Luo
ECO380 - University of Toronto
Fall 2015
Collusion
ECO380 - University of Toronto
Finite Horizon Games
Innite Horizon Games
Collusion in Practice
Expla
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Problem Set #2
Due in class October 29, 2013 (Tuesday)
You may submit handwritten homework assignments. Make sure your writing
is neat; illegible assignments will not be marked. Multi-page ass
Finite Horizon Games
Innite Horizon Games
Collusion in Practice
Repeated Games and Price-Fixing
Yao Luo
ECO380 - University of Toronto
Fall 2013
Collusion
ECO380 - University of Toronto
Finite Horizon Games
Innite Horizon Games
Collusion in Practice
Expla
The Webs New Monopolists
ECO380
Yao Luo
Strategy is antitrust with a
minus sign in front of it Tim
Business strategy Woften about how to
is u
gain a dominant position in the market
place in order to maximize profits being a
monopoly is a clear way to do t
Bertrand Again
Here we study a situation known
as capacity constraints.
1
Say the demand in the market is Q = 6000-60P. Say we have two
firms who will compete on price as in the Bertrand duopoly situation
and each has a constant marginal cost = 10.
Lets s