5 Written questions
5 Matching questions
- Unbalanced Oligopoly
- Payoff Matrix
- Brand Multiplication
- Price Discrimination
- Nash Equilibrium
- a A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
- b Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
- c Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.
- d An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
- e Variations on one good so that a firm can increase market share.
5 Multiple choice questions
- A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so.
- A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
- A combination of two or more companies into one company.
- A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
- A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
5 True/False questions
Vertical Merger → A merger between firms who have a buyer/supplier relationship. Example: BFGoodrich merging with rubber plantations.
Price Leadership → A firm whose price decisions are tacitly accepted and followed by others in the industry.
Joint Venture → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Collusion → A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
Game Theory → The theory that studies decision making in situations in which one player anticipates the reactions of other players to its own actions. Firms are mutually interdendent.