Session Overview
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So far, we have only analyzed one type of oligopoly. However, even when there are a small number of firms in a market, they can behave in a variety of different ways. We can compare the outcomes from these different types of competition to the competitive market. In this lecture, we learn more about different models of oligopoly. Bertrand price competition can be applied to pricing cereal. Image courtesy of ElCapitan on Flickr. |
Keywords: Cournot competition; cooperative competition; cartels; mergers; Bertrand competition.
Session Activities
Readings
Read the recitation notes, which cover new content that adds to and supplements the material covered in lecture.
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
- [R&T] Chapter 11, "The World of Imperfect Competition."
- [Perloff] Chapter 12, "Pricing and Advertising." (optional)
Lecture Videos
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View Full Video
View by Chapter
- Cournot Competition: Mathematical Analysis (0:10:12)
- Cartels (0:13:00)
- Comparison of Firm Types (0:04:25)
- Impact of Firm Quantity on Welfare (0:10:23)
- Bertrand Price Competition (0:09:17)
Resources
Check Yourself
Concept Quiz
This concept quiz covers key vocabulary terms and also tests your intuitive understanding of the material covered in this session. Complete this quiz before moving on to the next session to make sure you understand the concepts required to solve the mathematical and graphical problems that are the basis of this course.