Chapter 26: Oligopoly and Strategic Behavior
Q. 1 - Critical Thinking Questions
In what type of two-sided market does Animoca compete?
Q. 1 - For Critical Thinking
In what sense is there oligopolistic interdependence in the basic dominant-firm model, in which there truly is just one single dominant firm? Explain your reasoning.
Q. 1 - Problems
Suppose that the distribution of sales within an industry is as shown in the table.
a. What is the four-firm concentration ratio for this industry?
b. What is the eight-firm concentration ratio for this industry?
Q. 2
The table below shows recent worldwide market shares of producers of inkjet printers.
a. In this year, what was the four-firm concentration ratio in the inkjet-printer industry?
b. In this year, what was the seven-firm concentration ratio in the inkjet-printer industry?
Q. 26.1 - Learning Objectives
Outline the fundamental characteristics of oligopoly
Q. 26.2 - Learning Objectives
Explain alternative methods of measuring industry concentration
Q. 26.3 - Learning Objectives
Understand how to apply game theory to evaluate the pricing strategies of oligopolistic firms
Q. 26.4 - Learning Objectives
Identify features of an industry that help or hinder efforts to form a cartel that seeks to restrain output and earn economic profits
Q. 26.5 - Learning Objectives
Discuss network effects and the functions and forms of two-sided markets
Q. 2 - Critical Thinking Questions
Why do you suppose that a handful of large firms have become predominant in the market for multiplayer electronic games, in which network effects are particularly important?
