priceleadershipmodel.pptVIP

Chapter 14 Imperfect Competition Imperfect Competition Pricing in these markets falls between perfect competition and monopoly. Three topics considered: Pricing of homogeneous goods in markets with few firms. Product differentiation in these markets. How entry and exit affect long-run outcomes in imperfectly competitive markets. Pricing of Homogeneous Goods Market where a relatively few firms produce a single homogeneous good. Assume demanders are price takers. Assume there are no transactions or informational costs. These assumptions result in a single equilibrium price for the good. Initial