A market structure in which only a few sellers offer similar or identical products.
100
Big or small number of firms?
Small
100
Differentiated:
When the product or service is different to the ones of the other producers
100
Example of an OLIGOPOLY:
......
100
Are the profits bigger for the firms? Why?
Yes, because they control the market.
200
Game Theory:
Game theory is the analytical framework in which two or more individuals, companies, or nations compete for certain payoffs that depend on the strategy that the others employ
200
Easy or hard to enter?
Hard
200
Undifferentiated:
When the product or service is exactly the same as the ones of the producers
200
Example of a Vertical merger:
.......
200
Is it easy to make price comparison? Why?
Yes, because you don´t have many options.
300
Oligopoly by merger:
Is the joining of two or more firms under single ownership or control.
300
Numbers of companies that make an oligopoly:
3-5
300
Vertical merger:
The joining of a firm with another to which it sells an output or from which it buys an input
300
Example of an Horizontal merger:
........
300
Competitive strategies in oligopoly leads to ......... prices for consumers.
Lower
400
Collusions:
When one or more firms act cooperatively to set prices or outputs, to divide the market among themselves, or to make other business decisions jointly.
400
Is there a chance of colluding?
Yes
400
Horizontal merger:
The joining of firms that are producing or selling a similar product.
400
Example of an OLIGOPOLY:
.........
400
Profits generated by firms are use to innovate their product, why?
Because the competition of the market is based on the product.
500
Nash equilibrium:
A situation in which economic actors interact, each actor chooses the best strategy, given the strategies that all the other actors have chosen.
500
Competition consists in...?
Advertising and product differentiation
500
Simplest type of oligopoly?
Duopoly
500
Explain the example of the comics from the video:
......
500
What is the benefit of price stability?
Consumers will be able to plan ahead and stabilise their expenditure.