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Lecture 12

Economics 1021A/B Lecture Notes - Lecture 12: Exclusive Dealing, Market Structure, Nash Equilibrium


Department
Economics
Course Code
ECON 1021A/B
Professor
Michael Parkin
Lecture
12

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Chapter 15 Oligopoly
What is oligopoly?
oMarket structure in which
In between perfect and monopoly
Unlike monopolistic competition, there are barriers to entry
May be legal or natty
What is a game
o4 basic components
Rules
Strategies
Payoffs
Outcome
oIf both players acted rationally, it would have been a nash equilibrium
oNash equilibrium
Both players take best possible action given the action of the other player
oDominant-strategy equilibrium
oPrisoners dilemma
What would the other player think based on my decision?
Oligopoly price-fixing game
Duopolgy
oMarket where theres 2 firms
Collusive agreement
oGame of chicken
Anti combine law
oDeal with oligopoly’s
oCriminal
Conspire prices
Bid-rigging
False ads
oNoncriminal
Mergers
Exclusive dealing
o
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