9.3: Oligopoly Flashcards
1
Q
In Pricing interdependence scenarios - …
A
The firms in the market must take into account the likely reactions of their rivals to any change in price, output or forms of non-price competition.
2
Q
The Cournot assumption - …
A
The basic Cournot assumption is that each firm chooses its quantity, taking as given the quantity of its rivals.
3
Q
The Nash equilibrium - in oligopoly markets means…
A
That each firm will want to do the best it can given what its competitors are doing, and these competitors will do the best they can given what that firm is doing.
