Micro economic MONOPOLISTIC COMPETITION参考.ppt

* * * * * * Understanding real world markets. Students have no difficulty seeing oligopoly in the world around them. Again, emphasize that the work they’ve just done understanding the models of perfect competition and monopoly are not wasted because the real-world situation of oligopoly can be better understood by building on some of the features of competition and monopoly. Again, some of what they learned in each of the two previous chapters survives and operates in oligopoly. Traditional oligopoly models. Many instructors today want to skip the traditional models of oligopoly. Others want to teach only these models and skip the game theory approach. Your choice! This chapter is written in self-contained sections so that you can skip either approach. * * * * * * Game Theory Game theory is an entirely different approach to modeling a firm’s output and price decisions. It allows for the expected actions of all other firms in the market to be explicitly considered in the firm’s decision-making process. Game theory is a big step for the student and need a significant amount of time to develop. This chapter is designed to be flexible and provide you with many options on just how far to go. 1.We noted above that if you wish you can avoid game theory completely and stop at page 288. 2.You might want to introduce only the prisoner’s dilemma game. Pages 289–290 enable you to do that. 3.You might want to spend serious time applying the prisoner’s dilemma to a cartel game. Pages 291–295 enable you to do that. 4.You might want to extend the range of examples and apply the prisoner’s dilemma to a real-world research and development game. Pages 295–296 enable you to do that. 5.Finally, you might want to introduce repeated and sequential games and some of their applications and implications. Pages 297–299 enable you to do that. 6.Each of the steps laid out above is optional, but cumulative. You can stop at any point, but shouldn’t try to skip one step with the exception tha