TAILIEUCHUNG - Lecture Microeconomics (5th edition): Chapter 13 - Besanko, Braeutigam

Chapter 13 - Market structure and competition. This chapter presents the following content: Introduction - cola wars, a taxonomy of market structures, monopolistic competition, oligopoly – interdependence of strategic decisions, the effect of a change in the strategic variable, the effect of a change in timing. | 1 Market Structure and Competition Chapter 13 Copyright (c)2014 John Wiley & Sons, Inc. 1 2 Chapter Thirteen Overview Introduction: Cola Wars A Taxonomy of Market Structures Monopolistic Competition Oligopoly – Interdependence of Strategic Decisions Bertrand with Homogeneous and Differentiated Products The Effect of a Change in the Strategic Variable Theory vs. Observation Cournot Equilibrium (homogeneous) Comparison to Bertrand, Monopoly Reconciling Bertrand, and Cournot The Effect of a Change in Timing: Stackelberg Equilibrium Chapter Thirteen Copyright (c)2014 John Wiley & Sons, Inc. 3 Chapter Thirteen Market Structures • The number of sellers • The number of buyers • Entry conditions • The degree of product differentiation Four Key Dimensions Copyright (c)2014 John Wiley & Sons, Inc. 4 Chapter Thirteen Product Differentiation Definition: Product Differentiation between two or more products exists when the products possess attributes that, in the minds of consumers, set the .

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