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Differentiated Products Model
&
Infinite Horizon Oligopoly
ECON 100C
S. Levkoff
Cournot vs. Bertrand
The Cournot Model generates a gradual
depression of price down to MC as # of
firms increases.
Bertrand gives us an immediate
convergence to MC when we mov
Intro. to Cournot Duopoly
ECON 100C
S. Levkoff
Linear Demand Model (review)
Cournot Duopoly Model Setup
Residual Demand in the
Cournot Duopoly
Conditional Profit Maximization
Same Problem, Same Solution
We have transformed the duopolists
problem into a ba
Sequential Cournot Oligopoly
and Intro. to Bertrand Price
Competition
ECON 100C
S. Levkoff
Sequential Cournot Duopoly:
The Stackelberg Model
Timing of the Stackelberg Game
Timing of the Stackelberg Game
Timing of the Stackelberg Game
Timing of the Stackel
ECON 100C Final Exam
Name_
Prof. Levkoff
Seat#_
Spring 2014
PID#_
Version A/B Solutions (Friday)
Date_6/13/14_
Directions: You will have the entire three hours to complete the exam after everyone has
been seated and the exam distributed. The exam is 12 pa
ECON 100C Final Exam
Name_
Prof. Levkoff
Seat#_
Spring 2014
PID#_
Version A/B Solutions (Wednesday)
Date_
Directions: You will have the entire lecture to complete the exam after everyone has
been seated and the exam distributed. The exam is 12 pages front
Mathematical Preliminaries:
ECON 100C
Steven B. Levkoff, Ph.D.
The Mathematics of Optimization
Economic theories assume that an
economic agent is seeking to find the
optimal value of some function
consumers seek to maximize utility
firms seek to maximi
ECON 100C
Prof. Levkoff
Problem Set 4:
Continuous Games and Oligopoly
Part I. Evaluate the validity of each of the following statements. Be sure to clearly
accompany your explanation using graphs and equations where appropriate.
a) The Lerner index for a
ECON 100C Midterm Exam 2
Name_
Prof. Levkoff
Seat#_
Spring 2014
PID#_
Version A Solutions
Date/Time_
Directions: You will have the entire lecture to complete the exam after everyone has
been seated and the exam distributed. The exam is 8 pages front and b
UNIVERSITY OF CALIFORNIA, SAN DIEGO
BERKELEY DAVIS IRVINE LOS ANGELES MERCED RIVERSIDE SAN DIEGO SAN FRANCISCO
SANTA BARBARA SANTA CRUZ
DEPARTMENT OF ECONOMICS
ECON 100C: MICROECONOMICS C
LOCATION: WLH 2005
TIME: M/W 11:00AM-1:50PM
SUMMER SESSION II 2014
Solutions to Practice Problem Set 2
ECON 100C
Perloff Chapter 12
8. On August 2, 2005, Hertz charged $141.06 a day to rent a Taurus in New York City but
only $66.68 a day in Miami. Is this price discrimination? Why or why not?
If the difference in the cos
Solutions to Practice Problem Set 1
ECON 100C
Perloff Chapter 11
4. A monopoly has a constant marginal cost of production of $1 per unit and a fixed cost of
$10. Draw the firms MC, AVC, and AC curves. Add a downward-sloping demand curve, and
show the prof
Economics 100C Pricing
Strategies
I.
Price discrimination
II.
Two-part tariffs
III. Bundling
1
I. Price discrimination
A monopoly may be able to increase profits
through price discrimination two units of a
physically identical good offered at different
pr
Economics 100C Monopoly I
I.
Monopoly defined
II.
Monopoly profit maximization
III. Measuring market power
1
I. Monopoly defined
A monopoly firm is the only supplier of a good for
which there is no close substitute
The firm has market power and is a price
Economics 100C Game Theory
I.
Overview of game theory
II.
Static games
III. Sequential games
IV. Repeated games
1
I. Overview of game theory
Game theory formalizes strategic
situations with the goal of deriving the
best strategy for each participant and t
Solutions to Practice Problem Set 3
ECON 100C
Perloff Chapter 12
39. Using math, show why a two-part tariff causes customers who purchase few units to pay
more per unit than customers who buy more units.
Under a two part tariff, the firm charges
. The ave
Economics 100C Monopoly II
I.
Monopoly and welfare
II.
Reducing monopoly DWL
III. Monopoly and taxes
1
I. Monopoly and welfare
Monopolies are associated with inefficient
production
Why?
2
I.
Monopoly vs. perfect competition
p
M
pP
C
MC
D
MR
q
M
qP
C
3
I.
Economics 100C
Practice Problem Set 3
Perloff Chapter 12
39. Using math, show why a two-part tariff causes customers who purchase few units to pay
more per unit than customers who buy more units.
46. Knoebels Amusement Park in Elysburg, Pennsylvania, char
Economics 100C
Practice Problem Set 2
Perloff Chapter 12
8. On August 2, 2005, Hertz charged $141.06 a day to rent a Taurus in New York City but only
$66.68 a day in Miami. Is this price discrimination? Why or why not?
21. In the spring 2005, General Moto
ACCY 303 Class #5
2/5/2014
Group Restatement Case #1
This case requires you to research and analyze the assigned restatement. You can use the SEC
company data web site (http:/www.sec.gov/edgar/searchedgar/companysearch.html) to find all
company filings re
Syllabus: Economics 100C
Spring 2012, Sections A00 and B00
April 2, 2012
Times and Places
Lecture A00:
Lecture B00:
Section A01:
Section A02:
Section B01:
Section B02:
TuTh 8:00-9:20pm
TuTh 6:30-7:50pm
W 6:00-6:50pm
W 7:00-7:50pm
M 5:00-5:50pm
M 6:00-6:50
Economics 100C Introduction and Review
I.
II.
III.
IV.
Course logistics
Efficiency of perfect competition
Departures that generate inefficiency
Role of equity
1
I. Course Logistics
Syllabus
Topic
Nechyba chapters
Review of Perfect Competition
14
Monopoly