Chapter 8: Imperfect Competition

Monopoly

only provider of a good

Price discrimination

when seller can provide same good to different buys at different prices

Perfect price discrimination

when seller can charge each buyer the most theyre willing to pay for a good

Bilateral monopoly

when the market only has one buyer and one seller

Oligopoly

where a few firms sell a standardized or differentiated product

Market power

ability of individual firm to influence price

Strategic decision-making

individual must make choice but consequences depend on factors that are unknown to the individual

Game theory

considers strategic decisions individuals in a game or market place will need to make to anticipate what a rival would do

Prisoners dilemma

situation where distrust leads two individuals to chose a less than optimal result