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Collusion
________: an agreement among firms in a market about quantities to produce or prices to charge.
Nash
________ equilibrium: a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen.
predatory pricing
In ________, the price has to be below the average variable cost to drive other people out of the market.
Tit for tat
________ is when a player begins cooperating but then does whatever the player did last time.
Self interest
________ pushes oligopolies towards competition, despite acting similar to monopolies.
Prisoners' Dilemma
The ________ is similar to an oligopolist reaching an outcome in a monopoly.
Game theory
________: the study of how people behave in strategic situations.
Cartel
________: a group of firms acting in unison.
duopoly
A(n) ________ is an oligopoly with two members.
Oligopoly
________: a market structure in which only a few sellers offer similar or identical products.
noncooperative equilibrium
The ________ is typically bad for the welfare of society.
Clayton Act
The ________ (1914) strengthened antitrust laws.
output effect
The ________ tells us that since the price is higher than the marginal cost, selling an extra gallon of water at the going price will raise profit.
Prisoners' dilemma
________: a particular "game "between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial.
Note 
Flashcard (40)