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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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