Chapter 28 Oligopoly
I. Oligopoly Defines  

II. Kinked Demand
  Collusive Pricing

IV. Price Leadership  

V. Analysis
VI. Restrictive/Progressive

Game Theory 
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Lecture Notes
Notes: Part II Product and Factor Markets
 introduces these markets

I. Oligopoly Defined



 C. Concentration ratios measure total output controlled by a few firms.
       1. Eight-firm Amosweb Economics ..
Four-firm Amosweb

          3. How Dominant Are Big US Corporations 10/1/21

D.  Three well-defined pricing models exist

          1. Kinked demand
          2. Collusive pricing
          3. Price leadership 

E. Readings, Audios, Video


But Low Wage Workers Suffered


 Superstar Firms and the Fall of the Labor Share video

Bank Oligarchs Survived 2008 Financial Crisis


II. Kinked demand  
 E. Econ Concepts in 60 Seconds: Kinked Demand Curve
 F. Kinked demand curve theory from You Tube
 G. Need more, try Kinked Demand from Amos Web.

III. Collusive pricing (OPEC).
       A. A formal agreement (cartel) or informal agreement
           among competitors to strict  supply and benefit
           from the resulting high price 
        B. trustbusters, better detecting cartels, and bolder punishmrnt

C. Inequality and the monopolies of unfettered techno markets
       D. Teddy Roosevelt takes on the trusts

Unit III. Review  A formal agreement to manipulate price to maximize profit

IV. Price Leadership
       A. A major player leads the way and others follow GM was
           a price leader until foreign competition made their market
           share too small to lead
      B. See
Price- Leadership Under Oligopoly

A major player leads the way and others follow










Image result for OLigopoly Cartoons



V. Economic analysis of oligopoly
A. Restrictive oligopolies tend to be very monopolistic in nature with
           1. P > MR = MC
           2. Production is not at the lowest point indicated by the AT Curve.
           3. Economic profits exist and quantity is restricted.
        B. Progressive oligopolies have high economic profits in spite of price decreases
            brought on by high-tech efficiencies.

Unit V. Review Price higher than lowest point on ATC

VI Restrictive vs. progressive oligopolies
      A. Restrictive oligopolies
           1. A few companies share a market creating a near monopoly situation.
           2. Example: Rust Belt industries in the United States before foreign competition.
      B. Progressive oligopolies
           1. Technology lowers cost and improves product quality.
           2. Companies must maintain technological base to survive.
           3. Low consumer prices, high product quality, and monopoly profits exist simultaneously. 
           4. As long as new product development causes growth in consumer demand, funds are
               provided for R & D and capital investment requirements.
           5. Examples include computer software and high-tech consumer electronics
           6. Once dominant software giant determined to prove life begins again at 40    4/4/15 


Unit VI. Review Technology allows for both high profits and low price





VII. Readings

Free Books from When
Oligopolies Ruled the Economy

How the Other Half Lives
1890's tenement life

Gilded Age The
Mark Twain’s book on a wealthy society 

Jungle, The Upton Sinclair

Knowledge in Society, The Use of
Friedrich Hayek
leads traditionalist

Leviathan Thomas Hobbs
begins social contract discussions

Muckrakers and their works

Octopus, The
A Story of California. Book 1 of a

return to  Free Economics Books 

Oligopoly Watch
B.  Read
      for a conservative view for Monopoly development from Human Freedom and
      the Laissez-Faire Republic
C. King On Knowledge, Power and Unchecked and Unbalances -  Audio

D. Big banks are operating as an 'oligopoly Video
POWER ELITES & MONOPOLY POWER for a conservative view of monopoly power.  
     Interestingly, I couldn't find   much pro antitrust material. Reason-our competitive world.
F. Listen to
The Limits of Power Bill Moyers sits down with history and international relations
    expert and former US Army Colonel Andrew J. Bacevich who identifies three major
    problems facing our democracy: the crises of economy, government and militarism,
    and calls for a redefinition of the American way of life.
G. Planned Obsolescence Disguised as Innovation, Oligopoly Disguised
as a Free Market, and the Enrichment of Oligarchs
H. Robber Barons Who Built America
I. See Progressive Era 15 min. video
Inside Big Tech's D.C. Survival Strategies

Tell Washington

VIII. Game theory is used by oligopolies to model their behavior.
A. Econ Concepts in 60 Seconds Video on Oligopolies and Game Theory 
Dominate Strategy
B. Lectures
    1. Dominant Strategy
    2. Nash Equilibrium
    3. Golden Balls. the Weirdest Split or Steal Ever!
    4. Taking a Closer Look at Golden Balls  
C. Examples 
    1. The Prisoners Dilemma #1      
Prisoner's Dilemma Game from Brynmawr College
Game Theory The Meeting Game
    3. Golden Bollocks is a You Tube game theory game.
    4. A Money Game

    5. Lions And Lambs: Can You Solve This Classic Game Theory Puzzle?

Advanced Game Theory Materials from materials from Wikipedia

Practice Quizzes

amosweb practice test by specific topic.
Oligopoly, answers provided.

Monopolistic Competition and Oligopoly multiple
choice practice questions
, no answers provided

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Definitions Normal form game · Extensive form game · Cooperative game · Information set · Preference  
Equilibrium concepts Nash equilibrium · Subgame perfection · Bayes-Nash · Trembling hand · Correlated equilibrium · Sequential equilibrium · Quasi-perfect equilibrium · Evolutionarily stable strategy  
Strategies Dominant strategies · Mixed strategy · Grim trigger · Tit for tat  
Classes of games Symmetric game · Perfect information · Dynamic game · Repeated game · Signaling game · Cheap talk · Zero-sum game · Mechanism design  
Games Prisoner's dilemma · Coordination game · Chicken · Battle of the sexes · Stag hunt · Matching pennies · Ultimatum game · Minority game · Rock, Paper, Scissors · Pirate game · Dictator game · Public goods game  
Theorems Minimax theorem · Purification theorems · Folk theorem · Revelation principle · Arrow's Theorem  
Related topics Mathematics · Economics · Behavioral economics · Evolutionary game theory · Population genetics · Behavioral ecology · Adaptive dynamics · List of game theorists  
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Chapter 26 Class Discussion Questions

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