Mini-Course on Oligopoly Theory
By Nir Dagan
Universidad del Pais Vasco, Bilbao, February 23-24, 2009.
PDF version
Outline
- 1
- Monopoly
- 1.1
- Simple single product monopoly
- 1.2
- Price discrimination
- 1.2.1
- Third degree price discrimination: when it is possible to identify consumers, and consumers cannot resell.
- 1.2.2
- Discrimination via quality choice and self selection. Consumers are not identified, and resale is possible.
- 2
- Bertrand Oligopoly:
Nash equilibrium in price competition with a single commodity
- 3
- Tacit collusion:
Infinitely repeated price competition and the falk theorem for subgame perfect equilibria.
- 4
- Product differentiation
- 4.1
- Exogenous substitute products, best response curves and Nash equilibrium.
- 4.2
- Spatial competition: the linear city
- 4.2.1
- Newspaper stands: location choice when prices are fixed, and the principle of minimum differentiation.
- 4.2.2
- Two stage competition: first location, then prices, and the principle of maximum differentiation.
Recommended textbooks
- Shy, Oz (1996)
Industrial Organization: Theory and Applications,
The MIT Press, Cambridge, Massachusetts.
- Tirole, Jean (1988)
The Theory of Industrial Organization,
The MIT Press, Cambridge, Massachusetts.