Microeconomics/Oligopolistic Competition

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Goals:

  • To explain how Duopoly and Oligopoly works
  • To explain price-based competition (Bertrand)\

To achieve these goals, we build on the definitions from Perfect Competition:

Oligopolistic Competition[edit]

Introduction to oligopolies, introduce the special case of duopolies.


Case 1: Duopolistic Competition[edit]

Case 2: Oligopolistic Competition[edit]

Bertrand competition[edit]

Price setting


Case 3: Bertrand Competition[edit]