How does the behavior of an oligopolist differ from the behavior of a monopolist? From a firm in perfect competition? From a firm in monopolistic competition?
Answer to relevant QuestionsWhy is game theory useful in describing the behavior of firms in oligopoly? According to game theorists, do oligopoly prices tend toward equilibrium? Why, or why not? Explain what is meant by a kinked demand curve. Why is it kinked? Explain the difference between two firms merging and two firms engaging in a joint venture. With two firms in the industry, if the market is contestable, prices will be moderate. Explain. Who regulates the regulators? Is it a problem?
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