ECON 101 Lecture Notes - Lecture 12: Nash Equilibrium, Solution Concept, De Beers
19 May 2017
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Chapter 12: oligopoly: firms in less competitive markets. 12. 1 oligopoly and barriers to entry: three characteristics, a small number of independent rms, firms are selling either identical or slightly differentiated products, barriers to entry are high. !1: policy-imposed barriers, patent - the exclusive right to a new product for a period of 20 years, occupational licensing - doctors/dentists/lawyers ; garbage collection/taxi. Sunday, november 27, 2016: tariff and quota. Cartels: the case of opec: cartel, a group of rms that collude by agreeing to restrict output to increase prices and pro ts, often formed by rms that supply commodities (e. g. sugar, coffee, and copper) The opec cartel with unequal members: players: saudi arabia, nigeria, strategies: low output, high output, playoffs: pro ts. 12. 3 sequential games and business strategy: business strategy: actions that a rm takes to achieve a goal, such as maximizing pro ts.
