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James




OLIGOPOLIES, GAME THEORY
& CONTESTABLE MARKETS

OLIGOPOLIES
Oligopoly: 3+ big firms in an industry, dominating production. E.g. Tesco, ASDA, Sainsbury's,
Morrisons ("The Big Four").

Duopoly: 2 big firms in an industry, dominating production. E.g. Pepsi and Coca Cola.

GAME THEORY
Game theory looks at how one firm changes their…

Page 2

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James




Even if oligopolies were in competition The skin/hair/deodorant
with each other, prices in such markets company, Dove, started a
Non-Price would be stable. Firms would not want to controversial advertising
Competition
raise or lower their prices. program in 2004 (i.e. altering
Paul Sweezy their brand image; not price).
RAISING…

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