Chapter 11
Oligopoly
Chapter 11
Oligopoly
An oligopoly is a market structure characterized by large firms that dominate the market, offering similar or identical products. This concentration of …
A collusive oligopoly occurs when firms in an oligopolistic market—where only a few companies dominate—agree to work together instead of …
A non-collusive oligopoly is a market structure where only a few firms dominate but compete against each other. In this setting, firms are independently …
An oligopoly, where market power is concentrated among a few entities, can lead to unfair strategies that disrupt the competitive landscape and reduce …
Public policy plays a crucial role in regulating the behavior of firms within oligopolistic markets to protect consumers and encourage fair competition. …
Market structures are classified by distinct characteristics that influence how firms compete and set prices.
In the realm of perfect competition, …
In a Bertrand oligopoly, companies compete by strategically setting prices rather than engaging in a continuous price-cutting war. Each company …
A Bertrand oligopoly occurs when a few firms compete by strategically setting prices rather than lowering them indefinitely. In this model, firms sell …
Firms indirectly determine price through output choices, rather than avoiding price-setting altogether. Each firm assumes its competitor’s production …
In the Cournot model, businesses compete based on the assumption that each firm chooses its production quantity by presuming its rivals’ output levels. …
The Stackelberg model illustrates a type of oligopoly where a leading firm sets its production quantity, anticipating the reaction of follower firms, who …
The Stackelberg model explains how being the first mover in a market gives a firm a competitive edge. The first-mover advantage is the benefit of …
The Bertrand model with differentiated products explains how companies compete on both price and perceived value. The classic Bertrand model assumes …
In the Bertrand model with differentiated products, firms compete on price while offering similar but not identical goods. Differentiation softens price …