Session Overview
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We have already learned about the operation of two very different types of markets: perfectly competitive markets and monopolists. However, most markets don’t fall into either category. For example, think of the market for soda - both Pepsi and Coke are major producers, and they dominate the market. This type of market structure is known as an oligopoly, and it is the subject of this lecture. Learn about the prisoner’s dilemma in this lecture. Image courtesy of Sheep purple on Flickr. |
Keywords: Oligopoly; cartel; game theory; Nash equilibrium; Cournot model; duopoly; non-cooperative competition.
Session Activities
Readings
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
- [R&T] Chapter 11, “The World of Imperfect Competition.”
- [Perloff] Chapter 12, “Pricing and Advertising.” (optional)
Lecture Videos
Resources
Further Study
These optional resources are provided for students that wish to explore this topic more fully.
Other OCW and OER Content
| CONTENT | PROVIDER | NOTES |
|---|---|---|
| 14.12 Economic Applications of Game Theory, Fall 2005. | MIT OpenCourseWare | An in-depth course on game theory. |
