econ ch 13

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econ 202 ch 13

Created Dec 11, 2010
by rothera

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	Side A	Side B
1	oligopoly	a few firms, barriers to entry, identical or differentiated products
2	four firm concentration ratio	add the four largest firms in the industry together -> if they account for > 40% of industry=oligopoly
3	with an oligopoly firms production decisions are dependent on	other firms in the industry
4	barriers to entry	anything that prevents new firms from entering the market
5	3 barriers to entry	economies of scalegovernment imposed barriersownership of a key input
6	economies of scale	compare the minimum efficient scale to the equilibrium quantity for the industrysituation when...
7	government imposed barriers	patent: the exclusive right to produce a good for 20 years
8	ownership of a key input	if production of a good or service requires a particular input, the control of that input can...
9	Game theory	the study of decision making when outcomes depend on others actions
10	duopoly games	2 player games
11	all games share 3 characteristics	1. rules that determine which actions are allowable2. strategies that players use to meet their...
12	payoff matrix	show players payoffs given strategies
13	competitive game	each player acts in their own interest
14	nash equilibrium	equilibrium resulting from each player acting in their self-interest
15	cooperative game	collusion (some agreement among players on strategies)
16	collusion	explicit: directly agreeing on strategy (illegal)implicit: non direct action (legal)
17	prisoners dilemma	a game where the nash equilibrium is such that there exists an alternative equilibrium where...
18	pricing game	strategy of matching prices
19	cartel	multiple firms act as a single monopolist
20	sequential move game	one player moves 1st, other follows
21	game tree moves from	left to right
22	# firms=	Equilibrium Q______________quantity