C13: Oligopoly Flashcards
1
Q
Game Theory
A
A set of tools enabling us to study strategic decision making
2
Q
Game
A
Startegic interaction between players were one’s outcome depends on their choices and those of others
3
Q
Common knowledge
A
Todos lo sabe, saben q lo saben, saben q saben q lo saben etc
4
Q
2 game categories
A
- Static: Players act simultaneously and don’t know what the otehrs are going to do
- Dynamic: NO ENTRA
5
Q
Nash Equilibrium
A
Matriz q me la se
Rationale q me lo se (mejor outcome sea cual sea la decision dle otro)
Estrategia q se elige siempre dominant strategy
6
Q
NE of game
A
(outcome p1, outcome p2)
7
Q
Cournot
A
Todo del libro + ejs
8
Q
Cournot +2 players
A
Sigo con el libro
9
Q
Bertrand
A
Firms set price and market q (identical products)
Firms price undercut each other to gain upper hand (until P=MC, durante P>MC)
Takeaway: With only 2 firms -> PC
10
Q
Stackelberg
A
LIBRO
