Understanding Oligopoly in Microeconomics
Introduction to oligopoly, a market structure between perfect competition and pure monopoly. In oligopoly, only a few sellers offer similar or identical products, leading to a balance between cooperation and self-interest. Characteristics of an oligopoly market include interdependence among firms an
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Oligopoly Behavior: Excess Capacity Models and Entry Deterrence Strategies
Examine the concept of excess capacity models in oligopoly behavior, where a monopolist may strategically deter entry by either building excess capacity or expanding current production facilities in response to potential entrants. Explore scenarios involving sunk costs, marginal costs, pricing strat
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Extensive-Form Games and Backward Induction: Strategic Insights
Explore the application of extensive-form games in strategic decision-making, focusing on Subgame Perfection and Backward Induction. Understand the dynamics of entry games, such as the interplay between a potential entrant and a monopolist. Delve into the implications of commitment in game theory th
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Understanding Sequential Games in Game Theory
Explore the concept of sequential games in game theory through an entry deterrence game involving an incumbent monopolist and a potential entrant. The game tree depicts various outcomes based on choices made by players, leading to discussions on Nash Equilibrium, credible commitments, and backward i
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