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Market situation where oligopoly and oligopsony co-exist
- Bilateral oligopoly is the market situation where oligopoly and oligopsony co-exist, that is, a market structure where the supply side is made up of a few sellers and the demand side consisting of a few buyers.
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Bilateral oligopoly is the market situation where oligopoly and oligopsony co-exist, that is, a market structure where the supply side is made up of a few sellers and the demand side consisting of a few buyers. Such a market structure implies the possibility of the presence of countervailing market power, referring to the market power that one
- 449KB
- Andrew Brincat
- 17
- 2015
- Definition 3
- Example 3
- Example 4
The strategy profile \((\hat{\mathbf{q}},\hat{\mathbf{b}})\) is a Cournot-Nash equilibrium of the game \(\Gamma '\) if for each seller \(i=1,\ldots ,m\) we have \(\pi _i(\hat{q}_i,\hat{\mathbf{q}}_{-i},\hat{\mathbf{b}})\ge \pi _i(q_i,\hat{\mathbf{q}}_{-i},\hat{\mathbf{b}})\), for each \(q_i\in \mathcal Q_i\), and for each buyer \(i=m+1,\ldots ,m+n\...
Consider the exchange economy defined in Example 2. To find the Cournot-Nash equilibrium, we have to solve the payoff maximisation problems for all agents. We first consider sellers and then buyers. Consider the maximisation problem of seller 1: This payoff function is strictly concave in \(q_1\); we solve as an unconstrained problem then check the...
Consider the partial replica of the exchange economy defined in Example 2 with r replicas of each buyer. We then have an exchange economy with 2 sellers and 2r buyers, i.e., \(u_i(x,y)=\ln (1+x)+y\) and \((x_i^0,y_i^0)=(3,0)\), for \(i=1,2\) and \(u_{ij}(x,y)=3x-\frac{1}{2}x^2+y\) and \((x_{ij}^0,y_{ij}^0)=(0,5)\), for \(i=3,4\) and \(j=1,\dots ,r\...
- Alex Dickson, Simone Tonin
- 2021
Apr 15, 2024 · An oligopoly is a market structure wherein a small number of producers work to restrict output or fix prices so they can achieve above-normal market...
Bilateral oligopoly is a. fi. natural generalization of Cournot competition to consider markets in which both sellers and buyers can have market power and so behave strategically in manipulating prices to be more favourable to them.
- Alex Dickson, Simone Tonin
- 2021
An oligopoly (from Ancient Greek ὀλίγος (olígos) 'few', and πωλέω (pōléō) 'to sell') is a market in which control over an industry lies in the hands of a few large sellers who own a dominant share of the market.
Definition: A bilateral monopoly/oligopoly is a situation where there is a single (or few) buyer(s) and seller(s) of a given product in a market. The level of concentration in the sale of purchase of the product results in a mutual inter-dependence between the seller(s) and buyer(s).
Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel. Oligopolistic firms are like cats in a bag. They can either scratch each other to pieces or cuddle up and get comfortable with one another.
