Oligopoly

Question 1

cartel d

Answer 1

oligopolistic firms may coordinate their actions

Question 2

what does a cartel do

Answer 2

collude with the aim of maintaining high prices and reducing competition

Question 3

what are some features of the cournot oligopoly model

Answer 3

firms simultaneously set output level without colluding,
firms act independently,
imperfect info about rivals,
Q that one firm produces affects profits of other firms because market price depends on total output,
one shot game with no prior knowledge (on output etc)

Question 4

features of the stackelberg oligopoly model

Answer 4

firms make decision at different times,
one firm is leader and sets output before rival,
leader has greater advantage,
leader entered market first, rep of producing goods of higher quality, cost advantage in production

Question 5

what is the bertrand oligopoly model

Answer 5

many firms set prices instead and allow consumers to decide

Question 6

nash-bertrand equilibrium d

Answer 6

set of prices such that no firm can obtain a higher profit by choosing a different price if other firms continue to charge these prices