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  2. Bertrand–Edgeworth model - Wikipedia

    en.wikipedia.org/wiki/Bertrand–Edgeworth_model

    In microeconomics, the Bertrand–Edgeworth model of price-setting oligopoly looks at what happens when there is a homogeneous product (i.e. consumers want to buy from the cheapest seller) where there is a limit to the output of firms which are willing and able to sell at a particular price. This differs from the Bertrand competition model ...

  3. Strategic trade theory - Wikipedia

    en.wikipedia.org/wiki/Strategic_trade_theory

    Strategic trade theory (sometimes appearing in literature as "strategic trade policy") describes the policy certain countries adopt in order to affect the outcome of strategic interactions between firms in an international oligopoly, an industry dominated by a small number of firms. [1]

  4. Oligopoly - Wikipedia

    en.wikipedia.org/wiki/Oligopoly

    The Cournot model and Bertrand model are the most well-known models in oligopoly theory, and have been studied and reviewed by numerous economists. [54] The Cournot-Bertrand model is a hybrid of these two models and was first developed by Bylka and Komar in 1976. [55] This model allows the market to be split into two groups of firms.

  5. Stackelberg competition - Wikipedia

    en.wikipedia.org/wiki/Stackelberg_competition

    Suppose firm has the cost structure (). The model is solved by backward induction. The leader considers what the best response of the follower is, i.e. how it will respond once it has observed the quantity of the leader. The leader then picks a quantity that maximises its payoff, anticipating the predicted response of the follower.

  6. Conjectural variation - Wikipedia

    en.wikipedia.org/wiki/Conjectural_variation

    In oligopoly theory, conjectural variation is the belief that one firm has an idea about the way its competitors may react if it varies its output or price. The firm forms a conjecture about the variation in the other firm's output that will accompany any change in its own output.

  7. Edgeworth paradox - Wikipedia

    en.wikipedia.org/wiki/Edgeworth_paradox

    The Edgeworth model shows that the oligopoly price fluctuates between the perfect competition market and the perfect monopoly, and there is no stable equilibrium. [ 6 ] Unlike the Bertrand paradox, the situation of both companies charging zero-profit prices is not an equilibrium, since either company can raise its price and generate profits.

  8. Microeconomics - Wikipedia

    en.wikipedia.org/wiki/Microeconomics

    An oligopoly is a market structure in which a market or industry is dominated by a small number of firms (oligopolists). Oligopolies can create the incentive for firms to engage in collusion and form cartels that reduce competition leading to higher prices for consumers and less overall market output. [ 32 ]

  9. Kinked demand - Wikipedia

    en.wikipedia.org/wiki/Kinked_demand

    Stigler first argues that the kinked demand models are not useful, as Hall and Hitch’s model only explains observed phenomenon and is not predictive. He further explains that the kinked demand analysis only suggests why prices remain sticky and does not describe the mechanism that establishes the kink and how the kink can reform once prices ...