ECON 1000 Chapter 15-16: Econ Notes Chapter 15 & 16
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ECON 1000 Full Course Notes
Verified Note
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Document Summary
Oligopoly: is a market structure in which natural or legal barriers prevent the entry of new firms, a small number of firms compete and own majority of the market. This is a model of a market structure where few firms compete and strategically interact. The firms consider the effects of its and other firm"s actions on its own profit. Duopoly is an oligopoly with only two firms. Cartel is a group of firms in collusive agreement. Natural or legal barriers prevent the entry of new firms. Game theory: is a set of tools for studying strategic behaviour, it seeks to understand oligopoly and form of economic political and social and even biological rivalries by using a method of analysis. Strategies: action"s such as raising or lowering price, output, advertising or product quality. Payoffs: profits and losses of players. a payoff matrix shows payoffs for every possible action by each player.
