5 concepts
Collusion and Competition
Firms in an oligopoly can increase their profits through collusion, but collusive arrangements are inherently unstable.
Game Theory Applications to Oligopoly
Game theory provides a framework for understanding how firms behave in an oligopoly.
The Prisoner's Dilemma and Oligopoly
The prisoner's dilemma shows why two individuals might not cooperate, even if it is collectively in their best interest to do so.
Duopoly Example
The Cournot model, in which firms compete on output, and the Bertrand model, in which firms compete on price, describe duopoly dynamics.
Cartel Example
A cartel is a formal collusive arrangement among firms with the goal of increasing profits.