Chpt 3: Markets
3.1 Defining Market and Products of the same market.
Market consists of goods that have multi-monopoly power that are able to influence
the price in the market.
Products of the same market:
Cross price elasticity: large & positive Ed su
Week 6 Game theory and Oligopoly
Monopoly only one that set price and quantity
Competitive firm price taker, cannot influence price
Oligopoly can influence price and quantity hence use game theory
- Nash Equilibrium: a set of strategy
Week 5 Monopoly Product Variety and Quality
o Consumers rank the product differently
o All consumers rank the products similarly
Consumers are heterogene
Week 4 Price discrimination Part 1 and 2
Price discrimination is.
- The ability to charge different prices to different consumer group.
- Induce Monopoly to sell more output to reduce inefficiency
Problem to have Price Discrimination
- Identify different