ECO101H1 Lecture Notes - Lecture 12: Nash Equilibrium, Concentration Ratio, Oligopoly
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ECO101H1 Full Course Notes
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Many industries fall btw perfect comp and mopey. Oligopoly: a market structure in which only a few sellers offer similar or identical products. Monopolistic competition: a market structure in which many firms sells products that are similar but not identical. Concentration ratio: the percentage of the market"s total output supplied by 4 largest firms. Oligopoly has high concentration ratios (e. g. video games, credit cards) Oligopoly: a market structure which has only a few sellers offering similar or identical products. Strategic behaviour in oligopoly: a firm;s decisions about p or q can affect other firms and cause them to react. The firm will consider these reactions when making decisions. Game theory: the study of how people behave in strategic situations. Collusion: an agreement among firms in a market about quantities to produce or prices to charge. At&t and verizon could agree to each produce had of the monopoly output. For each firm: q= 30, p=, profits .