In an oligopoly, there are a few firms that dominate the market.
Out of all market structures, collusion works best in an oligopoly as there are so few firms.
Game Theory is most easily understand in a two-player game with two possible choices.
In a prisoner’s dilemma, there exists a dominant strategy that, when played, will lead to the Nash Equilibrium.
Even though the best group outcome is to cooperate, individual self-interest is such that in a prisoner’s dilemma, each person benefits from not cooperating given the choice of his or her opponent.
Other game theory models exist such as chicken, one dominant strategy/no dominant strategy.
Oligopoly & Game Theory
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.