Game Theory and Oligopoly Fall - 2627 Words

Econ 101: Principles of Microeconomics Chapter 15 - Oligopoly Fall 2010 Herriges (ISU) Ch. 15 Oligopoly Fall 2010 1 / 25 Outline 1 Understanding Oligopolies 2 Game Theory The Prisoner’s Dilemma Overcoming the Prisoner’s Dilemma 3 Antitrust Policy Herriges (ISU) Ch. 15 Oligopoly Fall 2010 2 / 25 The Oligopoly Monopolies are quiet rare, in part due to regulatory eï ¬â‚¬orts to discourage them. However, there are many markets that are dominated by a relatively few ï ¬ rms, known as oligopolies. The term oligopoly comes from two Greek words: oligoi meaning â€Å"few† and poleein meaning â€Å"to sell†. Examples of oligopolies include: 1 2 3 4 5 6 7 Airliner Manufacturing: Boeing and Airbus Food†¦show more content†¦Eï ¬â‚¬orts to model such strategic interactions has led to a whole branch of economics and math known as game theory Herriges (ISU) Ch. 15 Oligopoly Fall 2010 8 / 25 Understanding Oligopolies The Duopoly In order to understand some of the possible behaviors in the case of oligopolies, consider the simplest case - the duopoly (i.e., two ï ¬ rms). Think, for example, of the airliner industry, which is dominated by two ï ¬ rms (Boeing and Airbus). Suppose that the demand for airliners in any given month is given by Price ($mill.) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 Herriges (ISU) Quantity Demanded 0 1 2 3 4 5 6 7 8 Total Revenue TR = P Ãâ€" Q 0 3.50 6.00 7.50 8.00 7.50 6.00 3.50 0 Ch. 15 Oligopoly Marginal Revenue MR = ∆TR/∆Q 3.50 2.50 1.50 0.50 -0.50 -1.50 -2.50 -3.50 Fall 2010 9 / 25 If MC=1.75, how much would a monopoly produce? Q=2 Understanding Oligopolies The Collusion Outcome One alternative in the case of a duopoly would be for the two ï ¬ rms to form a cartel A cartel is an agreement among several producers to obey output restrictions in order to increase their joint proï ¬ t. Essentially, the cartel acts like a monopolist and simply divides the market among members of the cartel. The most famous example of this is the Organization of Petroleum Exporting Countries (OPEC) OPEC was formed in 1960’s in response to quotas instituted by PresidentShow MoreRelatedMarket Strategy Case Study: Katrinas Candies1665 Words   |  7 PagesKatrinas Candies would be successful operating in an Oligopolistic Structure. Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry. The market can be dominated by as few as two firms or as many as twenty, and still be considered oligopoly. With fewer than two firms, the industry is monopoly. As the number of firms increase (but with no exact number) oligopol y becomes monopolistic competition. Because an oligopolistic firm is relativelyRead MoreFirms Incentives to Avoid Price Competition in Oligopoly Markets520 Words   |  3 PagesFirms Incentives to Avoid Price Competition in Oligopoly Markets In the UK a few, large firms dominate most industries. These industries are known as oligopoly markets. Oligopoly markets are an example of imperfect competition. It consists of a market structure in which there is a small number of large firms in the industry hence is relatively highly concentrated. Barriers to entry and exit are also likely to exist. In oligopoly markets there is product differentiationRead MoreMarket Structure of Oligopoly 1755 Words   |  8 PagesStructure Of The Market Structure Of Oligopoly And The Difficulty In Predicting Output And Profits Market structure of oligopoly Oligopoly is a market structure where there are a few firms producing all or most of the market supply of a particular good or service and whose decisions about the industrys output can affect competitors. Examples of oligopolistic structures are supermarket, banking industry and pharmaceutical industry. The characteristics of the oligopoly are: • Small number of large firmsRead MoreOligopoly Market Structure2237 Words   |  9 PagesOligopoly Oligopoly is a market structure in which the number of sellers is small. Oligopoly requires strategic thinking, unlike perfect competition, monopoly, and monopolistic competition. †¢ Under perfect competition, monopoly, and monopolistic competition, a seller faces a well defined demand curve for its output, and should choose the quantity where MR=MC. The seller does not worry about how other sellers will react, because either the seller is negligibly small, or already a monopoly. Under oligopolyRead MoreGame Theory : The Competitive Edge Of Business, Politics, And Everyday Life By Dixit And Nalebuff Essay2016 Words   |  9 PagesGame Theory states that most anything and everything can be thought of as a game. People can use it to strategize on voting, deciding on what articles or coupons to release, or even deciding whether or not, it is in your best interest to rat out som eone else if both parties are being questioned by the police. There are many companies that use this in order to decide how they are going to operate. The book Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life by DixitRead MoreQuestions on Oligopoly19013 Words   |  77 PagesChapter 16 Oligopoly MULTIPLE CHOICE 1. Markets with only a few sellers, each offering a product similar or identical to the others, are typically referred to as a. competitive markets. b. monopoly markets. c. monopolistically competitive markets. d. oligopoly markets. ANSWER: d. oligopoly markets. TYPE: M DIFFICULTY: 1 SECTION: 16.1 2. An oligopoly is a market in which a. there are only a few sellers, each offering a product similar or identicalRead MoreTopic: Profit Maximization of a Firm.1326 Words   |  6 Pagesoperating under. As mentioned earlier, firms profit maximizing output decisions take into account the market structure under which they are operating. There are four kinds of market organizations: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect Competition Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. For a market structure to be deemed â€Å"Perfectly Competitive†Read MoreMarketing Analysis : Perfect Competition2982 Words   |  12 Pagesregulating how they function and how they must operate in future. I will provide an adequate amount of information concerning perfect competition, monopolistic competition, oligopoly, and monopoly. I will also discuss how each term is important to consumers and how it affects the market. Perfect Competition Perfect Competition is a theory of market structure based on four assumptions: there are many sellers and buyers, sellers sell a homogeneous good, buyers and sellers have all relevant information, entryRead MoreMarket Structures : Reynolds And Philip Morris1080 Words   |  5 PagesPhilip Morris Game theory allows business experts to examine decision-making in oligopolistic interdependent cases. Applying the game theory allows one to present the situation in a simple background by creating formalized models to analyze the possible results (Bhat and Rau, 2008). The outcomes may be cooperation (or collusion) and conflict (or competition), which will influence the oligopolistic company’s choice of best strategy if faced with such outcomes. Prisoner’s Dilemma game The prisoners’Read MoreMonopolistic Competition13794 Words   |  56 PagesCHAPTER 25 Monopolistic Competition and Oligopoly Topic Question numbers ___________________________________________________________________________________________________ 1. Monopolistic competition: definition; characteristics 1-17 2. Demand curve 18-24 3. Price-output behavior 25-78 4. Efficiency aspects 79-88 5. Oligopoly: definition; characteristics 89-112 6. Concentration ratio; Herfindahl Index 113-140 7. Game theory 141-156 8. Kinked-demand curve model 157-176

The Theory Of Developmental Psychology - 1896 Words

Developmental psychology is viewed as different types of approaches which aim to look at how people develop. Theories such as Bowlby s attachment theory can explain how a child s development can be altered by their attachment, thus leading to the ideology of the nature vs nurture debate, nature referring to the process of biological maturation while nurture is referring to the influence of the environment or surroundings, which involves the idea that a person learns through experiences.(McLeod, S. A, 2012) The psychodynamic approach was prevailed by Freud, he supported the ideology that every person has a ‘conscious’, ‘preconscious’ and a ‘subconscious’. In addition to this, he argued that the mind consists of three different structure; the ‘id’ being a person instincts and internal forces, ‘superego’ being the conscious and the ‘ego’ being the rational mind. (Simply Psychology, 2014) Freud created the psychsexual stages, this is the development of a person by sexual elements. This was later contradicted by Erikson who credited Freud, however stated that development was down to social elements not sexual elements. (A2 Psychology. 2014) Behaviourism is deemed as the theory that our development is shaped by our experiences and environment, Pavlov demonstrated this by coining ‘Classical Conditioning’ which is the learning by association between two things. (Psychteacher, 2014) ‘Operant condit ioning was later constructed by Watson who believed we all have 3 essentialShow MoreRelatedThe Theory Of Developmental Psychology1644 Words   |  7 Pages Developmental Psychology 2 Abstract Developmental Psychology is a scientific study that shows psychological changes in human being to birth to adulthood. It was first made to help infants and children, but now it has expanded to help the adolescence and adults just as well. Paul B. Baltes, has apply the six principles of human development, lifelong, multidimensional, multidirectional, gains and losses, contextualRead MoreThe Theory Of Developmental Psychology1336 Words   |  6 PagesDevelopmental psychology is viewed as different approaches which aims to look at how children and adults develop. Theories such as Bowlby s attachment theory can explain how a child s development can be altered by their attachment, thus leading to the ideology of the nature vs nurture debate, nature referring to the process of biological maturation while nurture is referring to the impact of the environment or surroundings, which involves the idea that a person learns through experiences. (McLeodRead MoreTheories And Theories Of Developm ental Psychology874 Words   |  4 Pages DESCRIBE AND EVALUATE 2 THEORIES IN DEVELOPMENTAL PSYCHOLOGY Attachment states to a particular strong bond with a specific person or persons. The bond among the person is emotional and effective, and the person that an infant bond to in this way is known as an attachment figure as said by Schaffer(1977),there are three ways in which attachment can be developed. There are three ways in which attachment can be developed. The first one is when the new born baby is attached to any human; secondary,Read MoreTheories Of Developmental Psychology : Attachment Theory1178 Words   |  5 PagesDescribe and evaluate two theories in developmental psychology Attachment theory, it refers to an affectionate bond. â€Å"A relatively extended and enduring connection with the partner is important as a unique individual is interchangeable with no other† Ainsworth (1989) cited in Gross (2003) hand out in class (03/06/2013).The aim of this attachment is for the infant to remain in close proximity to the attachment figure as she is considered the secure base and the infant would become distressed on separationRead MorePiaget s Theory On Stages Of Developmental Psychology1039 Words   |  5 Pages― Toni Sorenson Jean Piaget was a leader in the field of developmental psychology, the study of how people grow. Instead of continuing the Freud s work with psychoanalysis, as many psychologists and philosophers did at the time, Piaget stayed â€Å"closer to his teacher Pierre Janet s psychology† (Vidal) Best known for his theory on stages of cognitive development, Piaget was a great innovator and set up the foundation for today’s psychology and education. Working with children from the early 1920sRead MorePiaget s Theory On Stages Of Developmental Psychology1180 Words   |  5 Pages― Toni Sorenson Jean Piaget was a leader in the field of developmental psychology, the study of how people grow. Instead of continuing the Freud s work with psychoanalysis, as many psychologists and philosophers did at the time, Piaget stayed â€Å"closer to his teacher Pierre Janet s psychology† (Vidal) Best known for his theory on stages of cognitive development, Piaget was a great innovator and set up the foundation for today’s psychology and education. Working with children from the early 1920sRead MoreFreud, Erikson, And Piaget : Theories Of Developmental Psychology Essay2372 Words   |  10 PagesPiaget: Theories in Developmental Psychology Many factors influence children’s development as well as that massive amount of development theories that elaborate on why children do certain things, why children have developmental disorders, or even why some children have developmental delays. Although there are many theories regarding children development and how they are influences, theorist make some great points in the child development but with any theory come flaws such as developmental issuesRead MoreDescribe and Evaluate Any Two Theories in Developmental Psychology1220 Words   |  5 PagesDescribe and evaluate any two theories in developmental psychology. By Aimee Kaur This paper will focus on two theories in moral development within developmental Psychology. There are three components to our morality; these are emotional, cognitive and behavioural. Shaffer (1993) described morals as a â€Å"set of principles or ideals that help the individual to distinguish right from wrong and to act on this decision† In his book The Moral Judgement of the Child (1932), Piaget states that allRead MoreAttachment Theory For Understanding Risk And Protection Factors Within Developmental Psychology1940 Words   |  8 PagesThis essay will comprises, firstly, on past research looking into what attachment/ attachment theory is, focusing on Bowlby’s (DATE) research into why an infant’s first attachment is so important. Followed, by the work of Ainsworth et al (1978) bringing to light the findings from the strange situation, and how the research can explain mental illness. From this and in-depth discussion looking at how the previously discussed pieces of research have an effect on two particular disorders, depressionRead MoreAttachment Theory For Understanding Risk And Protection Factors Within Developmental Psychology1988 Words   |  8 PagesThis essay will comprise, firstly, on past research looking into what attachment/ attachment theory is, focusing on Bowlby’s (DATE) research into why an infant’s first attachment is so important. Followed, by the work of Ainsworth et al (1978) bringing to light the findings from the strange situation, and how the research can explain mental illness. From this and in-depth discussion looking at how the previously discussed pieces of research have an effect on two particular disorders, depression and

Oklahoma City The Fourth Seeded West Virginia University...

OKLAHOMA CITY--The fourth-seeded West Virginia University baseball team lost an 11-10 heartbreaker in extra frames against the third-seeded TCU Horned Frogs in the Phillips 66 Big 12 Championship at Chickasaw Bricktown Ballpark on Sunday afternoon. The Mountaineers (36-22) overcame an 8-0 deficit in the first two and a half innings to take a 10-9 lead in the bottom of the fifth. That lead stood until the ninth inning until TCU (42-15) tied the game. â€Å"This is a team that hasn’t given up, WVU head coach Randy Mazey said. As a coach you say that all the time. You encourage them to never give up. To have a team that actually never gives up, that’s a fun team to coach. I’d hate to stop coaching these guys. I’d hate for the season to end just on the sole reason I love being around them. It’s a great character group, a great chemistry group. They’re a bunch of great baseball players. They’re fun to be around. I would hate for it to stop now.† Sophomore designated hitter Kyle Davis went 3-for-6 with three RBI. With a two-run double in the fifth the sophomore broke the Big 12 Championship RBI record. In 2001, Nebraska s Dan Johnson had the previous best of 13. Freshman shortstop Jimmy Galusky went 3-for-4 with two RBI and three runs scored. Freshman right fielder Darius Hill went 3-for-5 with four RBI. Senior Ross Vance pitched 6.1 innings of relief baseball. The southpaw gave up four runs (three earned) on 10 hits. He struck out a team-record 12 batters. â€Å"It’s unbelievable what

Discipline in School Free Essays

Discipline is very important in a civilized life. Discipline can be defined as control over one’s desires and obedient’ to codes of behavior. If there is no discipline, there is confusion everywhere. We will write a custom essay sample on Discipline in School or any similar topic only for you Order Now Discipline is of great importance in school and at home. If there is no discipline in schools, it is not possible to imp education effectively. It is necessary to maintain law an order in the society. There should be discipline at home also. Children must be taught self-control. Parents themselves should keep discipline. Children should be taught the value discipline in childhood. A country cannot face extern wars if its armed forces are not disciplined . Unfortunately, there are not much discipline today schools, colleges and government offices. That is w India is facing many problems . Discipline is necessary for people in all walks folia Students studying in schools and colleges, Define personnel, industrial workers – all must have disciple Only then a nation can progress| A student needs to be very punctual to his routine. He should be very regular and sincere to his studies. He should be hard working. He should always be ready and active in various other extracurricular activities. He should remain active and smart. He should learn how to face difficult situations and how to win over them. A student is the future of the country. It is he who has to take the responsibility of the country. He should be healthy and fit. Physical education is as important for students as to be studious and sincere at studies. A student should always be in good health and fitness. For this he should get up early in the morning. He should take exercise daily. He should play game of his choice daily. It is well known that a healthy body has a healthy mind. He is mind will be strong and sharp only when he is physically strong, fit and healthy. The biggest task of a student is to study. A student should be very devoted and sincere to his studies. He should be very punctual. He should know the importance of time. He should regularly do his home work. He should have an urge to learn new things. He should have respect for his teachers and elders. He should be very cooperative with his friends. He should help the needy. Discipline demands self-control and dedication. One who cannot control himself cannot control others. He has to dedicate his individuality in the larger interest of society. Discipline is a virtue. It needs to be cultivated from early childhood. It cannot be developed overnight. It takes time and requires patience. When discipline is enforced, it fails to bring the desired result. True essence of discipline is lost when it is enforced . Student life is the formation period of life. The foundation of adulthood is laid down during the time. The man grows with the habits and manners acquired at that time. These things hardly change. So a student should be much disciplined in his student life. One who is disciplined raises high in life. Life of great men is examples of discipline. The great men have made mark in their lives, because they strictly follow their goals with all the earnestness and sincerity. So, we should try to be disciplined from the early stage of life. Both at school and at home they should be made to follow the rules of discipline. Parents, teachers and elders have significant role to play. A student should always learn good habits. This will lead to the formation of a good society and nation as well. | How to cite Discipline in School, Papers