Oligopoly (Edexcel A-Level Economics A): Flashcards
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Oligopoly definition
Oligopoly definition
Market structure with only a few dominant firms
Key feature of oligopoly firms
Key feature of oligopoly firms
Interdependence - must consider rivals' reactions
Concentration ratio measures
Concentration ratio measures
Market share held by largest firms in an industry
Kinked demand curve model creator
Kinked demand curve model creator
Paul Sweezy
Demand elasticity when rivals don't follow price rise
Demand elasticity when rivals don't follow price rise
Elastic - firm loses many customers to competitors
Dominant strategy in game theory
Dominant strategy in game theory
Best choice regardless of what other player does
Nash equilibrium definition
Nash equilibrium definition
No player has incentive to change given others' choices
Cartel
Cartel
Agreement between firms to maximize joint profits
Price leadership
Price leadership
Dominant firm sets price, other firms follow its lead
Monopsony
Monopsony
Market with a single buyer of a good or service