Firms in an oligopoly often: A. ace perfectly elastic demand curves. B. make decisions based on the behavior or expected behavior of their competitors. C. have no incentive to collude. Government antitrust laws
Proposition 2 Consider the Bertrand oligopoly (1) with a single multiproduct firm given by ∆ = {S, m + 1, ..., n}. (i) For each single-product firm j ∈ N\S, a small reduction in cj increases its output and profit, and decreases all other outputs and all other firms' ...
In a perfectly competitive market, firms make zero economic profits in the long-run. What causes this? A market of price takers is called (a) perfectly competitive. (b) monopolistically competitive. (c) a monopoly. (d) an oligopoly. ...
The models of the firm most often discussed under imperfect competition include monopolistic competition, monopoly, and oligopoly. Monopolistic competition, though imperfectly competitive, comes close to the theoretical model of perfect competition. Although each firm in such an industry is its own price...
We formulate an oligopoly model in a mixed market, in which a welfare-maximizing public firm competes against profit-maximizing domestic private firms and foreign private firms. Firm 0 is the public firm, and there exist n domestic private firms (firm 1, firm 2,…, firm n) and m foreign ...
Is there an oligopoly that can rationalize capacity?In some industries, a few players coordinate to avoid glut — think OPEC in oil, or semiconductor foundries scaling more carefully. In cloud AI, while it’s effectively an oligopoly of three to five in each region, they are in hyper competi...
The value of an operating system (or its application store tied into it) increases with the number of its users - and the number and breath of software applications available. In operating systems, that’s often the dominant factor effecting their popularity. They are a ...
Common unobservablesMost estimators of discrete games assume that any unobservable components in the agent’s payoffs represent private information, and thus, these unobservables are treated as i.i.d. errors. At the same time, most applied researchers agree that there is often information that is...
Industries with high barriers to entry often have high barriers to exit. Explain. What are the barriers to the entry and exit of the oligopoly market? Why are barrier to entry crucial to the success of a monopoly firms? How do exit barriers affect int...
Give an example of how discrimination might persist in a competitive market. What are the price discrimination techniques that a business might use to gain a competitive advantage? Firms in an oligopoly often _. Monopolistic competitive products are usually ___ adver...