EM c9 market structure: oligopoly

oligopoly
a market structure characterized by competition among a small number of large firms that have market power, but that must take their rivals\' actions into account when developing their own competitive strategies

noncooperative oligopoly models
models of interdependent oligopoly behavior that assume that firms pursue profit-maximizing strategies based on assumptions about rivals\' behavior and the impact of this behavior on the given firm\'s strategies

cooperative oligopoly models
models of interdependent oligopoly behavior that assume that firms explicitly or implicitly cooperate with each other to achieve outcomes that benefit all the firms

kinked demand curve
an oligopoly model based on two demand curves that assumes that other firms will not match a firm\'s price increases, but will match its price decreases

game theory
a set of mathematical tools for analyzing situations in which players make various strategic moves and have different outcomes or payoffs associated with those moves

dominant strategy
a strategy that results in the best outcome or highest payoff to a given player no matter what action or choice the other player makes

nash equilibrium
a set of strategies from which all players are choosing their best strategy, given the actions of the other players