So far, we have only analyzed one type of oligopoly. However, even when there are a small number of firms in a market, they can behave in a variety of different ways. We can compare the outcomes from these different types of competition to the competitive market. In this lecture, we learn more about different models of oligopoly.
Bertrand price competition can be applied to pricing cereal. Image courtesy of ElCapitan on Flickr.
Keywords: Cournot competition; cooperative competition; cartels; mergers; Bertrand competition.
Read the recitation notes, which cover new content that adds to and supplements the material covered in lecture.
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
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- Cournot Competition: Mathematical Analysis (00:10:12)
Cournot Competition: Mathematical Analysis
- Cartels (00:13:00)
- Comparison of Firm Types (00:04:25)
Comparison of Firm Types
- Impact of Firm Quantity on Welfare (00:10:23)
Impact of Firm Quantity on Welfare
- Bertrand Price Competition (00:09:17)
Bertrand Price Competition
This concept quiz covers key vocabulary terms and also tests your intuitive understanding of the material covered in this session. Complete this quiz before moving on to the next session to make sure you understand the concepts required to solve the mathematical and graphical problems that are the basis of this course.
These optional resources are provided for students that wish to explore this topic more fully.
See the [Perloff] companion website for an overview of the main topics covered in the chapter, as well as quizzes, applications, and other related resources.