Skip to main content

Questions tagged [oligopoly]

Questions about markets where the number of sellers is finite and larger than one.

7 questions with no upvoted or accepted answers
Filter by
Sorted by
Tagged with
7 votes
0 answers

Dynamic Bertrand competition when players take turns

Consider the following game: There are two players, $i\in\{1,2\}$ Time is discrete and runs to infinity during periods $t=\{1,2,\ldots\}$ At eat point in time, players have a price $p_i(t)\in\mathbb{...
Ubiquitous's user avatar
3 votes
0 answers

How to solve the Bertrand model when marginal costs are different and not constant?

Find the equilibrium in the Bertrand model with two firms, with total costs given by: $TC_1(q_1) = \alpha q_{1}^2$ $TC_2(q_2) = \beta q_{2}^2$ Inverse demand is given by $P = A - Q$, where $Q = q_1 + ...
Nicolas Torres's user avatar
1 vote
0 answers

On Cournot question

In a duopoly market, the market demand function is $y(p) = 120-p$ where $y=y_1+y_2$ Total function of firm 1 is $C_1(y_1)=20y_1$ while the reaction function of firm 2 is $y_2= 60-0.5y_1$. Assume that ...
studentp's user avatar
  • 172
1 vote
0 answers

Will the market for driverless cars move toward a monopoly?

There is a short article in The Economist (link below) where the writer makes the claim that because there are firms the exhibit economies of scale - in driverless technology - they will eventually ...
Romaion's user avatar
  • 165
0 votes
0 answers

Long Run Model of Oligopolies After Recession

I am currently investigating about the long run impact of the COVID 19 to the US airline industry. Is there any specific (long-run) model that I can use for oligopolies (for 4 main companies)? Because ...
HelloWorld's user avatar
0 votes
0 answers

How useful are basic economics (elasticity / consumer & producer theory) in real life?

I am thinking how these concepts will be applied in the industries / at a job. For example I could see elasticity as useful in projecting the outcomes of supply ...
Neo's user avatar
  • 1
0 votes
0 answers

Sequential and simultaneous price competition

Frims 1 (leader) and 2 (follower) compete in price with product differentiation • Find the equilibrium price, quantity and profit when they choose price simultaneously and sequentially. q1=100-10p1+...
micurb's user avatar
  • 1