Monopolistic Competition & Oligopoly

4/16/98


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Table of Contents

Monopolistic Competition & Oligopoly

Two More Market Structures

Monopolistic Competition

Who makes close substitutes for Wendy’s?

Closer to Pure Competition Than Pure Monopoly

Key Characteristic

Methods of Product Differentiation

Advertising Persuades!

Who Makes the Last Honest Pizza?

How many said, “Round Table?”

Advertising

Wounded Turkey Shoots Man

What Does This Mean?

Brand Names

Can you identify this seller?

Packaging

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Next, let’s look at some cost and revenue cures for the firm in monopolistic competition.

Short-Run Profit Maximization

Zero Economic Profit in the Long Run

Monopolistic Competition Vs. Perfect Competition

Oligopoly

Oligopolists

Models of Oligopoly

Model 1: Cartels

Requirements for Success

More About Cartels ...

Model 2: Price Leadership

Model 3: Cost-Plus Pricing

Model 4: Game Theory

A Special Oligopolist

Payoff Matrix

Duopoly Payoff Matrix

Model 5: The Kinked Demand Curve

Mergers and Oligopoly

Monopolistic Competition Conclusions

Conclusions on Oligopoly

Author: Dean Schiffman