TAILIEUCHUNG - Lecture Managerial economics: Chapter 16 - Dr. Hasnain Naqvi

A game like the prisoners’ dilemma is played in duopoly. A duopoly is a market in which there are only two producers that compete. Duopoly captures the essence of oligopoly. This chapter provides knowledge of oligopoly games. | Oligopoly Games An Oligopoly Price-Fixing Game A game like the prisoners’ dilemma is played in duopoly. A duopoly is a market in which there are only two producers that compete. Duopoly captures the essence of oligopoly. Figure on the next slide describes the demand and cost situation in a natural duopoly. A Cartel Game. The prisoner’s dilemma to a cartel game on pages 291–295 has been carefully designed to get the maximum payoff from the knowledge your students have of the perfect competition and monopoly results of the two preceding chapters and to introduce them to game theory in a setting that is as close to the previously studied settings as possible. 1. The natural duopoly setting ensures that there is a zero profit equilibrium that corresponds to perfect competition and monopoly profit equilibrium. 2. Instead of just asserting a payoff matrix, the numbers in the matrix come directly from monopoly profit-maximizing and competitive outcomes. You need to do a bit of work

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Economic principles
• Kinh tế học quản lý
• Fundamentals of managerial economics
• Oligopoly games
• Market interactions
• Marginal analysis
• Marginal benefit
• Price discrimination
• Monopolistic competition
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production