Oligopoly
A market structure dominated by a small number of large, powerful firms that differentiated products.
What is an oligopoly?
https://drive.google.com/file/d/1hFRs7vjcFf-vbTAwGzHMgHop-Fv5_Yzz/view?usp=drivesdk
An illegal agreement among firms to fix prices or restrict output to drive up profits.
What is collusion (or a cartel)?
https://drive.google.com/file/d/16D3dkSGICNUGuSAiA-lkmopLt_qO3CET/view?usp=drivesdk
The market structure characterized by a single seller, a unique product, and no close substitutes.
Selling the same good to different consumers at different prices based on their willingness to pay.
What is price discrimination?
https://drive.google.com/file/d/10ImtEuzYuNg7vHFfk4ORa1qf84GIfajs/view?usp=drivesdk
Where one firm's choices impact its competitors.
What is mutual interdependence?
https://drive.google.com/file/d/10HQQHAHsGcPpnmFjZ7wCwZiU3Q0TgY4a/view?usp=drivesdk
The framework used to analyze interactions between players who must consider their rivals' choices.
A monopoly that emerges because a single firm can produce goods at a lower cost than multiple smaller firms.
What is a natural monopoly?
https://drive.google.com/file/d/1_8hgBv_IaHEthW9Ps-QaDajKYzjLE4oy/view?usp=drivesdk
Laws designed to prevent monopolies and protect competitive markets.
What are antitrust laws?
https://drive.google.com/file/d/1xLyhX_xz_1WVMbwOfEYrjO0EUI6vwDiP/view?usp=drivesdk
The simplest form of an oligopoly.
A situation in game theory where both players choose their optimal strategy given the strategy chosen by the other.
What is a Nash Equilibrium?
https://drive.google.com/file/d/1rra8n8k-kG-M6AfDw4ac0j7Y8sU8r-xR/view?usp=drivesdk
The hurdles that protect a monopoly from new competitors.
What are barriers to entry?
https://drive.google.com/file/d/1z-DYIgBKUTTmBm7oDvwe0_tM4PbAnHFy/view?usp=drivesdk
A government-imposed limit on the price a monopoly can charge.
What is price ceiling (or price regulation)?
https://drive.google.com/file/d/1WuOurHie-zxVNQuufS6RiCNXWax3nSi8/view?usp=drivesdk
A model explaining why oligopoly prices remain stable, predicting that rivals will match price cuts but ignore price increases.
What is a curved(kinked) demand curve?
https://drive.google.com/file/d/10PGs7biJPNceAzvhThxhVfwt5b1mQs8u/view?usp=drivesdk
A scenario showing why two firms might fail to cooperate, even when cooperation is in their best interest.
What is the Prisoner's Dilemma?
https://drive.google.com/file/d/1wM1nck-T23hUUHHb79XDCJ1buYQZMv4N/view?usp=drivesdk
The loss of economic efficiency that happens when a monopoly restricts output to raise prices.
What is deadweight loss?
https://drive.google.com/file/d/1WMpQFLhbyHTXA7X0G59tKHXkCuSlY5F4/view?usp=drivesdk
A price point where a monopoly earns zero economic profit because the P=ATC.
What is fair-return pricing?
https://drive.google.com/file/d/1BAiSk9vqZyddGWZ5pvbVmik--TZyrMkg/view?usp=drivesdk
A metric calculated by adding the market shares of the top four firms.
What is the Four-Firm concentration ratio?
https://drive.google.com/file/d/1sEPaXsK4D8g0b67JsxEH6PD_utqZPtSl/view?usp=drivesdk
A strategy that yields the highest payoff for a firm, regardless of its competitor's strategy.
What is a dominant strategy?
https://drive.google.com/file/d/1xWCpkY1Lubld2ITdyo5tC_mKwpoHQWkX/view?usp=drivesdk
A firm's ability to raise the market price of a good or service above marginal cost without losing all its customers.
What is market power (or monopoly power)?
https://drive.google.com/file/d/18pWdwAF5ir9J0BD9eJS1po89Yz0Rziby/view?usp=drivesdk
The point at which a monopoly achieves allocative efficiency.
What is socially optimal pricing, or P = MC?
https://drive.google.com/file/d/1u4mOWWRFaBl4gP_KeUzy1hl7aWEGy17J/view?usp=drivesdk