TERM 1
Sweezy Oligopoly
DEFINITION 1
An industry in which few firms compete, using differentiated
products, under the assumption that competitors will match
price decreases but not increases, with barriers to entry.
TERM 2
Cournot Oligopoly
DEFINITION 2
An industry in which few firms compete, using homogeneous
products, believing that opponents will not change output if
they do, with barriers to entry.
TERM 3
Stackelberg Oligopoly
DEFINITION 3
An industry in which few firms compete, using either
homogeneous or differentiated products, with a leader who
chooses output first and followers who set output to
maximize profit based on the leader, with barriers to entry.
TERM 4
Bertrand Oligopoly
DEFINITION 4
An industry in which few firms compete, using identical
products at constant marginal cost, with price competition so
fierce that price equilibrium is marginal cost.
TERM 5
Sequential-Move Game
DEFINITION 5
A game in which one player makes a move after observing
the other player's move.
