ECONOMICS : MICRO ECONOMICS THEORY III
University Of Florida
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MARKETS STRUCTURES II : MICRO-ECONOMICS THEORY III
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An oligopoly is characterized by a market with a few firms that recognize the strategic
interdependence. There are several possible ways for oligopolies to behave depending on the
exact nature of their interaction. In a quantity leader model, one firm leads by setting its
output and the other firm follows. The leader has to take into account the reaction of the
follower
Class notes
MARKETS STRUCTURES II : MICRO-ECONOMICS THEORY III
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An oligopoly is characterized by a market with a few firms that recognize the strategic interdependence. There are several possible ways for oligopolies to behave depending on the exact nature of their interaction. In a quantity leader model, one firm leads by setting its output and the other firm follows. The leader has to take into account the reaction of the follower
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