You have studied two extreme forms of market structure: one with infinite producers (perfect competition) and one with a single producer (monopoly). Realistically, within the spectrum of these two models, the vast majority of firms exist in an imperfectly competitive setting where at least one firm is a price setter. You will now study two other broad categories in the world of imperfect competition: one in which many firms compete (monopolistic competition – for example, the market for restaurants in a city) and another in which few firms compete (oligopoly – for example, the cell phone industry).

## Monopolistic competition

## Oligopoly

## Game theory

## Nash equilibrium

You have studied two extreme forms of market structure: one with infinite producers (perfect competition) and one with a single producer (monopoly). Realistically, within the spectrum of these two models, the vast majority of firms exist in an imperfectly competitive setting where at least one firm is a price setter. You will now study two other broad categories in the world of imperfect competition: one in which many firms compete (monopolistic competition – for example, the market for restaurants in a city) and another in which few firms compete (oligopoly – for example, the cell phone industry).

## Monopolistic competition

## Activity

Principles of Microeconomics: “Chapter 11, Section 1: Monopolistic Competition: Competition among Many”

Boundless: “Economics, Chapter 12: Monopolistic Competition”

Khan Academy: “Oligopolies and Monopolistic Competition”

Khan Academy: “Monopolistic Competition and Economic Profit”

## Oligopoly

## Activity

Principles of Microeconomics: “Chapter 11, Section 2: Oligopoly: Competition among Few”

Khan Academy: “Oligopolies, Duopolies, Collusion, and Cartels”

MIT OpenCourseWare: Johnathan Gruber’s “Oligopoly”

## Game theory

## Activity

Khan Academy: “Game Theory of Cheating Firms”

## Nash equilibrium

## Activity

Khan Academy: “More on Nash Equilibrium”

Khan Academy: “Why Parties to Cartels Cheat”

Khan Academy: “Prisoners’ Dilemma and Nash Equilibrium”

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