TAILIEUCHUNG - Lecture Principles of microeconomics - Chapter 10: Thinking strategically

This chapter introduces you to strategic thinking and how to use game theory to model economic behaviour. You will learn that making self-interested choices sometimes leaves you worse off than you would expect. | Thinking Strategically Slide 10 - What is Chapter 10 about? Slide 10 - I. The Theory of Games Slide 10 - Why do economists study “games” ? In a perfectly competitive market, each firm must take the market price as a given Only decision = how much to produce No longer run feedback from that decision, hence no strategic choices exist at firm level But many (most) markets are not like that When firm can influence market price, firm knows this will affect behavior of other firms – which will influence future markets Strategic choices now have to be made Slide 10 - Theory of Games The payoff of many actions depends upon the actions of others Imperfectly competitive firm must weigh the responses of rivals when deciding whether to cut prices Implication: decisions of competing firms are interdependent Game theory now dominates economic analysis of industrial organization Slide 10 - Elements of a Game Basic elements The players The strategies The payoffs Payoff matrix A .

• Kinh tế học
• Principles of microeconomics
• Lecture Principles of microeconomics
• Market imperfections
• Labour markets
• Thinking strategically
• Game theory
• Ten principles of economics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Market forces
• Supply and demand
• Market economies
• Competitive markets
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Market failures
• Negative externalities
• Positive externalities
• Market inefficiency
• Public goods
• Common resources
• Types of goods
• Cost benefit analysis
• Tax system
• Federal government
• Marginal tax rate
• Budget surplus
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Firms in competitive markets
• Average revenue
• Marginal revenue
• Sunk costs
• Monopoly resources
• Government created monopolies
• Natural monopolies
• Monopoly’s revenue
• Monopolistic competition
• Nash equilibrium
• Equilibrium for oligopoly
• Long run equilibrium
• Perfect competition
• Production possibility frontier
• Opportunity cost
• Rational people
• Indirect effects
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• Elastic demand curve
• Policy analysis with supply
• Policy analysis with demand
• Wealth creation
• Production cost
• Total surplus
• International trade
• Additional benefits of trade
• Average costs
• Break even price
• Increasing marginal costs
• Long run analysis
• Firms profit graphically
• Accounting profit
• Market effectiveness
• Monopolist pricing
• Price discrimination
• Antitrust laws
• Disruptive innovation in oligopolies
• Predatory pricing