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Micro 20.pdf

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Gale Pooley
Gale Pooley

Micro 20

Economy & Finance
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Microeconomics
Opening Prayer
Quizmaster
Oligopoly Few Firms
Perfect Competition Monopoly Monopolistic Competition Oligopoly Number of Firms Many One Many Few Type of Product Identical Unique Brands Similar Ease of Entry Easy Blocked Easy Hard Demand D = MR D > MR Dynamic Game Theory Examples Commodities Rice Apples Utilities Government Brands Coke Apple Home Depot Lowes
Collusion Dominant Strategy Nash Equilibrium Cooperative Equilibrium Non-cooperative Equilibrium Key Terms
Oligopoly Small number of interdependent fi rms compete
Oligopoly Cannot use usual methods Demand curves not obvious Complex Strategy
Oligopoly Don’t know Demand Curve Don’t know Marginal Revenue curve Don’t know where to fi nd pro fi t maximization point
Eddie Willie Betrays Willie 1Year Silent Silent Betrays Eddie 1Year Eddie Goes Free Willie 10Years Willie Goes Free Eddie 10Years Willie 5Years Eddie 5Years Prisoner's Dilemma
Prisoner's Dilemma Pursuing the Dominant Strategy Results in Non-Cooperation and Leaves Everyone Worse Off
Game Theory Rules Strategies Payoffs
John Nash (1928 - 2015 ) Game Theory Nash Equilibrium Nobel 1994 A Beautiful Mind
Duoploy Two Sellers
Pro fi ts Attract Competition
Five Competitive Forces Existing Firms Potential Firms Substitutes Buyers Suppliers

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