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Chapter 9 Basic Oligopoly Models - ubalt.edu

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Copyright 2010 by the McGraw-Hill Companies, Inc. All rights Economics & Business StrategyChapter 9Basic Oligopoly Models9-2OverviewI. Conditions for Oligopoly ?II. Role of Strategic InterdependenceIII. Profit maximization in Four Oligopoly Settings Sweezy (Kinked-Demand) model Cournot model Stackelberg model Bertrand ModelIV. Contestable Markets9-3Oligopoly Environment Relatively few firms, usually less than 10. Duopoly - two firms Triopoly - three firms The products firms offer can be either differentiated or homogeneous. Firms decisions impact one another. Many different strategic variables are modeled: No single Oligopoly of Strategic Interaction Your actions affect the profits of your rivals. Your rivals actions affect your profits .

9-2 Overview I. Conditions for Oligopoly? II. Role of Strategic Interdependence III. Profit Maximization in Four Oligopoly Settings – Sweezy (Kinked-Demand) Model

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