Introduction

  • Defining questions of IO
    • What determines the form and intensity of competition within an industry?
      • Form: Compete in price, quality, advertisement
      • Intensity: Collusion vs. price wars
    • What determines the extent of potential competition?
      • Ease of entry, entry barrier
      • Response of existing firms to a new entrant
    • What determines asymmetries among firms?
      • What determines sustained dominance?

Static Equilibrium Models of Oligopoly

  • Sections: Capacity constraints, price competition w/ differentiated products