Microeconomics/Oligopolistic Competition

Goals:

  • To explain how Duopoly and Oligopoly works
  • To explain price-based competition (Bertrand)\

To achieve these goals, we build on the definitions from Perfect Competition:

Oligopolistic CompetitionEdit

Introduction to oligopolies, introduce the special case of duopolies.


Case 1: Duopolistic CompetitionEdit

Case 2: Oligopolistic CompetitionEdit

Bertrand competitionEdit

Price setting


Case 3: Bertrand CompetitionEdit