Oligopolistic firms in the us


Problem: Oligopolistic firms in the US try to limit competitions from their rivals. I provide a discussion on the interdependence of firms in oligopoly and how this affects firm behavior. I introduce the kinked demand curve model and discuss two ways that firms compete. One involves non-price competition through advertising and the other involves deterring would be competitors by building excess capacity. I provide a game theory framework for modeling the firms decisions.

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Macroeconomics: Oligopolistic firms in the us
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