PPT-Oligopoly and

Game Theory Chapter 15 Outline Cartels The Prisoners Dilemma Oligopolies When Are Cartels and Oligopolies Most Successful Government Policy toward Cartels and Oligopolies Business Strategy and . ii Content F....................................................I ABSTRACT ..................................................................................... THE MODEL............................. McGraw-Hill/Irwin. Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.. Oligopoly Markets. Interdependence of firms’ profits. Distinguishing feature of oligopoly. Arises when number of firms in market is small enough that every firms’ price & output decisions affect demand & marginal revenue conditions of every other firm in market. run characteristics of an oligopolistic industry. In general, we expect profits made byexisting firms to lead new firms to enter the industry. Such entry will, in turn, reduceprofits toward their comp 5. 24. 3. 11. Why are Entry Barriers. Sometimes High?. Entry Barriers. A few examples of factors that may serve as . ‘. barriers. ’. to free entry into a market:. economies of scale. government licensing. Game Theory . Chapter 15. Outline. Cartels. The Prisoner’s Dilemma. Oligopolies. When Are Cartels and . Oligopolies Most . Successful?. Government Policy toward . Cartels and . Oligopolies. Business Strategy and . Perfect Competition. Monopolistic Competition. Oligopoly. Monopoly. No Barriers to Entry (2 answers). Perfect Competition. Monopolistic Competition. Oligopoly. Monopoly. Interdependence. Perfect Competition. Oligopoly is a market dominated by a relatively small number of large firms. Unconcentrated markets have HH < 1,000. Products are either standardized or differentiated. Barrier to entry exist. Price, Output and profits depend on actions, reactions, and counteractions. Aims. Explain the meaning of oligopoly. Key Concepts. Oligopoly. Collude. Cartels. Price War. An oligopoly occurs when a few firms dominate a market.. In the UK. Car industry. The petrol market. The airline industry. 0. In this chapter, look for the answers to these questions:. What market structures lie between perfect competition and monopoly, and what are their characteristics? . What outcomes are possible under oligopoly? . Chapter 8. McGraw-Hill/Irwin. Copyright © . 2015 . by . McGraw-Hill Education (Asia). . All rights reserved.. Learning Objectives. Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition. 2. Why . oligopolists have an incentive to act in ways that reduce their combined profit, and why they can benefit from collusion . 3. How . our understanding of oligopoly can be enhanced by using game theory, especially the concept of the prisoners’ dilemma . competition. . between . firms. operating in the . same industry.. INDUSTRY. . (Fast Food- type of industry). FIRM. . (NAME OF BUSINESS). FIRM. . (McDonald’s). FIRM. . (NAME OF BUSINESS). STORE. Topic 8 | Part 1 30 May 2013. Date. . A. ntitrust Economics 2013. David S. Evans. University of Chicago, Global Economics Group. . Elisa Mariscal. CIDE, ITAM, CPI. . Overview. Role of Oligopolies in the Economy.  . Course Code: ECNHC401. Course Title: Advanced Microeconomics.  . Unit: 3. Oligopoly. Prepared by. Anindita Chakravarty. Asst. Prof. ( Dept of Economics) . Meaning of Oligopoly. Oligopoly is a market situation in which there are a few firms selling .