Lecture 4 oligopoly Flashcards
1
Q
Monopoly
A
Industry containing one singular firm
2
Q
Duopoly
A
Industry containing two firms
3
Q
Oligopoly
A
An industry containing a few firms
4
Q
Nash equilibrium
A
NE is a pair of strategies which constitute multiple best responses
5
Q
Stackelberg model
A
Firm 2 observes firm 1s output level and follows suit
6
Q
Betrand games
A
Games in which firms use only price strategies and play simultaneously
are
7
Q
Price leadership games
A
one firm
decides its price ahead of the others
