Imperfect Competition

4. Outcome of two firms picking their dominant strategies
7. Limited competition, market is shared by a small number of producers or sellers
9. Selling the same product at different prices to different consumers, to maximize sales and profits.
11. Group of oligopolies all benefit from one another, like market share
12. Fall in total surplus that can result from a tax
13. A measure of the total output produced in an industry by a given number of firms in the industry
15. Firm’s best payoff compared to other strategies and whatever the other firms do

1. Analysis of strategies where the outcome of a participant's choice of action depends critically on the actions of other participants
2. When P=MC, usually from government getting involved with the monopoly
3. Selling the same product at different prices to different consumers, to maximize sales and profits.
5. Secret or illegal cooperation
6. No matter what, the strategy earns a player a smaller payoff than some other strategy
8. Compares two firms options with payoff from each option in accordance with what the other firm does, ex. firm A advertise: $130 and firm B doesn't advertise: $ 180 ...
10. Two prisoners each have two options, to confess or not to confess, whose outcome depends on the simultaneous choice made by the other
14. A better regulated price would be one that allowed the monopoly to charge a price, equal to its average total cost, and includes a normal profit