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Oligopoly (Autosaved)
Oligopoly (Autosaved)
• Few sellers
• Interdependence
• Intense rivalry
• ‘Strategy’ plays a dominant role.
• Barriers to entry; Natural and Strategic
• Cournot Equilibrium
• Bertrand Equilibrium
• Stackelberg Equilibrium
• The kinked demand model
• Cartel
• Collusion
• Price Leadership
PRICE
500
400
300
200
100
MC
D
MR
Rs 3000,3000
• Maximin Strategy
• Dominant Strategy
• Dominated Strategy
• Pure and mixed Strategy
High output
Indian
Low output
+6 lakhs, +6lakhs
enter
Jet 0 lakhs, +12 lakhs
Stay out high
Indian
low
0 lakhs, +8 lakhs