Economics 1021A/B Lecture Notes - Lecture 12: Exclusive Dealing, Market Structure, Nash Equilibrium
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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
oIf both players acted rationally, it would have been a nash equilibrium
Both players take best possible action given the action of the other player
What would the other player think based on my decision?
Oligopoly price-fixing game
oMarket where theres 2 firms
oGame of chicken
Anti combine law
oDeal with oligopoly’s
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