北大微观经济学课件(英文版)Ch Oligopoly培训教程文件.pptVIP

中级微观经济学 Chapter Twenty-Seven Oligopoly Oligopoly A monopoly is an industry consisting a single firm. A duopoly is an industry consisting of two firms. An oligopoly is an industry consisting of a few firms. Particularly, each firm’s own price or output decisions affect its competitors’ profits. Oligopoly How do we analyze markets in which the supplying industry is oligopolistic? Consider the duopolistic case of two firms supplying the same product. Quantity Competition Assume that firms compete by choosing output levels. If firm 1 produces y1 units and firm 2 produces y2 units then total quantity supplied is y1 + y2. The market price will be p(y1+ y2). The firms’ total cost functions are c1(y1) and c2(y2). Quantity Competition Suppose firm 1 takes firm 2’s output level choice y2 as given. Then firm 1 sees its profit function as Given y2, what output level y1 maximizes firm 1’s profit? Quantity Competition; An Example Suppose that the market inverse demand function isand that the firms’ total cost functions are Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example An equilibrium is when each firm’s output level is a best response to the other firm’s output level, for then neither wants to deviate from its output level. A pair of output levels (y1*,y2*) is a Cournot-Nash equilibrium if Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition; An Example Quantity Competition Quantity Competition Quantity Competition Iso-Profit Curves For firm 1, an iso-profit curve contains all the output pairs (y1,y2) giving firm 1 the same profit level P1. What do iso-profit curv