Oligopoly and Game Theory
Oligopoly theory is concerned with market structures in which the actions of individual firms affect and are affected by the actions of other firms. Unlike the polar cases of perfect competition and monopoly, strategic issues are fundamental to the study of such markets. In this entry we will explain some of the central themes of oligopoly theory, both modern and classical, and emphasize the connection between these themes and developments in the noncooperative theory of games.
KeywordsNash Equilibrium Efficient Scale Subgame Perfect Equilibrium Aggregate Output Free Entry
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