Oligopoly and Strategic Behavior 14... Overt Collusionrise, and prevents entry of firms... Covert Collusionabout price and output LO6... Price Leadership Model... Positive Effects of Adv
Trang 1Oligopoly and Strategic Behavior 14
Trang 2Oligopoly
Trang 4High Concentration Industries
LO1
(1)
(3) Herfindahl Index
(1)
(3) Herfindahl Index
Trang 8Kinked Demand Curve
LO6
Trang 9Overt Collusion
rise, and prevents entry of firms
Trang 10Covert Collusion
about price and output
LO6
Trang 12Global Perspective
LO6
Trang 13Price Leadership Model
Trang 14Positive Effects of Advertising
LO7
Trang 15Negative Effects of Advertising
better, lower priced, unadvertised good
Trang 16Oligopoly and Efficiency
Trang 17One-Time Game: Strategy
Trang 18One-Time Game: Strategy
LO7
Trang 20A One-Time Game: Equilibrium
LO7
Trang 21Credible and Empty Threats
•
Trang 23Repeated Game with Reciprocity
ThirstQ’s advertising strategy
Trang 24Sequential Game
• First Mover Advantage
• Advantages for the firm that is first
• May be better prepared
LO7
Trang 26First-Mover Advantages
LO7
Extensive Form
Trang 28Extensive Form
LO7