MARKET STRUCTURE AND GAME THEORY

Module 3 - Background

MARKET STRUCTURE AND GAME THEORY

Required Reading

To start with, take a look at this short animated video that will introduce you to the basics of market structure:

McGlasson, M. (2009). Episode 25: Market structures.  https://www.youtube.com/watch?v=9Hxy-TuX9fs&list=PLr6g_xbkz_0u_cINHBVW1ZuEpozKk2XGx

Now read Chapters 9 and 10 from the following book for more detail on these topics.  In particular, pay attention to the numerical examples and the “Self-Check Questions” at the end of each section.

Taylor, T. (2014) Microeconomics. OpenStax College.  http://cnx.org/contents/[email protected]:WXgRcPaN@10/Introduction-to-a-Monopoly  

 

 

 

Finally, read this slightly more advanced chapter. Pay special attention to the sections at the end on game theory and the “Policy Response to Oligopoly” section that covers the Herfindahl index:

 

Beveridge, T. M. (2013). Chapter 8: Between perfect competition and monopoly. A Primer on Microeconomics. [New York, N.Y.] [222 East 46th Street, New York, NY 10017]: Business Expert Press.