Econ 101: Principles of Microeconomics Chapter 15 - Oligopoly Fall 2010 Herriges (ISU) Ch. 15 Oligopoly Fall 2010 1 / 25 Outline 1 Understanding Oligopolies 2 Game Theory The Prisoner’s Dilemma Overcoming the Prisoner’s Dilemma 3 Antitrust Policy Herriges (ISU) Ch. 15 Oligopoly Fall 2010 2 / 25 The Oligopoly Monopolies are quiet rare‚ in part due to regulatory efforts to discourage them. However‚ there are many markets that are dominated by a relatively
Premium Game theory Oligopoly Cartel
coordination failure is when economic agents do not properly coordinate their choice which then leads to an equilibrium outcome that leaves agents worse off. The alternative situation would be a more optimal equilibrium outcome however since agents do not coordinate their behaviour‚ they settle at the suboptimal equilibrium. It may be the case that agents are aware of the preferred equilibrium but there are difficulties reaching this because of coordination. Adam Smith said “The division of labour
Premium Economics Nash equilibrium Political corruption
disequilibrium of greed portrayed in Kino’s imaginary story indicated that equilibrium is not only necessary at the lowers of social status‚ but also required in the economy and global market today. Jamie Woodwell‚ in her article about mortgage banking‚ titled‚ A Detour to Dis-Equilibrium‚ speaks about the global market saying‚ “When a shock hits a market— a dramatic shift in supply or demand— the market moves to dis-equilibrium. When that happens buyers and sellers cannot come to terms‚ the market slows
Premium Feminism Sociology Social status
you to game theory to understand papers that use it‚ and o develop game-theoretical models yourselves • the focus is on solution concepts o theory o exercises o a few applications o Crombez: Applied Game Theory. 4 Contents • Basic equilibrium concepts Nash equilibria o Subgame perfection o Sequential equilibria • Applications o Bargaining o Entry deterrence o Repeated games o Crombez: Applied Game Theory. 5 Practicalities • Five meetings • Text Book: Kreps‚ A Course in Microeconomic
Premium Game theory Nash equilibrium
Identify the stages of group development in Tuckman’s 5-stage model‚ and briefly discuss the differences between the 5-stage model and Gersick’s punctuated equilibrium model. Tuckman’s 5 stage model: Forming—little agreement; unclear purpose; guidance and direction Storming—conflict; increased clarity of purpose; power struggles; coaching Norming—agreement and consensus; clear roles and responsibilities; facilitation Performing—Clear vision and purpose; focus on goal achievement; delegation
Premium Decision making Evolution Decision theory
units of output produced in each plant. If the price of this product is given by 396 — 4x2‚ construct the overall marginal cost and determine profit maximising output in each plant. Explain the basic tenets of Rawl’s theory of justice. Define ’Nash equilibrium’ and explain with the help of the game ’Prisoner’s Dilemma’. Provide an example of a game with multiple Nash equilibria. MEC-001 1 P.T.O. SECTION - B Attempt any four questions from this section : 5. 4x10=40 With Cobb - Douglas production
Premium Nash equilibrium Supply and demand Game theory
permanently increased due to increased immigration d) population growth increased only temporarily Answer. (a) No effect on the steady state‚ because there has been no change in s‚ f‚ n‚ or d. Instead‚ k is reduced temporarily‚ but equilibrium forces eventually drive k to the same steady-state value as before. (b) The rise in energy prices reduces the productivity of capital per worker. This causes sf(k) to shift down from sf1(k) to
Premium Investment Thermodynamics Economics
connect. Moreover‚ with Fester pointing out good ideas that would have actually helped the group‚ the group didn’t want to make that effort to try to take that new approach and was resistant to change. Luthans describes this as the punctuated equilibrium model‚ “groups form in a first phase in which a target or mission is set and then are not altered very easily due to a process called inertia‚ or systematic resistance to change” (2011). Lastly Knowlton demonstrated poor leadership skill by leaving
Premium Term
| 14 | 18 | 10 | 1000‚1000 | 1500‚700 | 2000‚0 | 14 | 700‚1500 | 1400‚1400 | 2100‚900 | 18 | 0‚2000 | 900‚2100 | 1800‚1800 | So we can see when they all set the price as $10‚ they can get Nash equilibrium. Neither of them has a dominant strategy. Dominated strategy of supermarket1 is $18‚ and of supermarket 2 is $18 too. The nature of conflict make both of them want to get the largest revenue which is 2100 while the other gets only
Premium Game theory Nash equilibrium
equals the market price (P) (P>AVC). MC=8Q=P or Q=P/8 2. Since all 10 firms are identical‚ the industry supply curve will be: Q=10(P/8)=5P/4 3. To find the short-run equilibrium price equate the industry supply with the demand: 5P/4=300-P 5P=1200-4P 9P=1200 P=1200/9=133‚(3)≈133 So‚ the short-run equilibrium price will be $133. At this price the quantity supplied by all 10 firms will be about 167 units each firm will supply 16‚7 units. Task 2 1. In a short-run 10 firm supply about
Premium Economics Supply and demand