eBooks Search Include Read Aloud for titles that can be read aloud.

Tutors Available 24/7
Accounting  
Economics  
Marketing  
Mathematics  
Statistics  
Writing Services  

Please Blog Friends About This Free Library Using

Editors Notes:  A. Part II Product and Factor Markets should be read as an introduction to this chapter, especially by those using
                               McConnell Economics Books or involved with Test Prep, CLEP, or AP Economics projects.
                          B. Our Current Events Internet Library has an interesting economics section.
I. Introduction
   A. An oligopoly market exists when barriers to entry result in a few mMaster the Rules of Competitive Behavior! Order "Games People Play", on DVD!
is a course on Game Theoryutually dependent companies controlling a 
          substantial portion of a market. 
          1. Products may be homogeneous or differentiated.
          2. Examples include many industrial products such as steel and large consumer durables such as appliances. 
          3. Automobile, steel, game consoles and other oligopolistic industries lost monopoly power because of the 
              foreign invasion beginning in the 1970's.
              a. Eventually American companies became more competitive.
              b. The price was lower real wages for manufacturing workers.
              c.  The oligopolistic nature of the video game consol market
          4. Concentration ration measure the amount of total output controlled by a few firms.
               a. eight-firm concentration ratio - AmosWEB is Economics ...
               b. four-firm concentration ratio provides examples of possible oligopoly industries and companies.
           5. Wikipedia provides the following on high concentration industries
               a. Six movie studios movie studios receive 90% of American film revenues.
               b. The television industry is mostly an oligopoly of five companies: Disney/ABC, CBS Corporation,
                   NBC Universal, Time Warner, and News Corporation.^[37] See Concentration of media ownership.
               c. Four major music companies receive 80% of recording revenues.
               d. Four wireless providers control 89% of the cellular telephone market.^[38]
                    e. There are just six major book publishers.
               f. Healthcare insurance in the United States consists of very few insurance companies controlling
                  major market share in most states. For example, California's insured population of 20 million is
                  the most competitive in the nation and 44% of that market is dominated by two insurance 
                  companies,  Anthem and Kaiser Permanante. ^[39]
                   g. Anheuser-Busch and Miller Coors control about 80% of the beer industry.^[40]
   B Three well-defined pricing models exist
       1. Kinked demand  
       2. Collusive pricing
       3. Price leadership

Please Blog Friends About This Free Library Using  

 Master the Rules of Competitive Behavior! Order "Games People Play", on DVD!  a course on Game Theory

III. Price leadership
       A. One firm, usually dominant in size, sets price and others follow.
       B. The automobile industry with General Motors as the price leader was
            an example until foreign competition 
            made the industry monopolistically competitive. Now the automobile
            industry is so competitive it is approaching the purely competitive model.
       C. Intel Corporation has tried with limited success to be a price leader in the
           computer chip industry.

 IV. 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.

Free Political Science Book Summaries

Presidential Courage Brave Leaders and How They Changed America 1789-1989, by Michael Beschloss, 8 pages, or Buy this Book 

Second Chance Three Presidents and the Crisis of America Superpower, by Zbigniew Brzezinski, 6 pages, or Buy this Book

American Dynasty Aristocracy, Fortune, and the Politics of Deceit in the House of Bush, by Kevin Phillips 5 pages, or  Buy the Book

Don't Know Much About History Everything You Need To Know About American History But Never Learned, 5 pages, 
or Buy the Book

 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 ATC 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.

VIII. Game theory is used by oligopolies to model their behavior.
       A. Econ Concepts in 60 Seconds Video on Oligopolies and Game Theory  and Dominate Strategy
       B. Examples 
           1. The Prisoners Dilemma #1       Prisoner's Dilemma Game from Bryn Mawr College
           2. Game Theory The Meeting Game
           3. Goldon Bollocks is a You Tube game theory game.
           4. A Money Gane

Practice Quizzes

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

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

Please Blog Friends About This Free Library Using