Oligopoly, Game Theory, and Antitrust Policy — Collusion, Cartels, and Strategic Behavior Explained | Chapter 17 of Principles of Microeconomics
Oligopoly, Game Theory, and Antitrust Policy — Collusion, Cartels, and Strategic Behavior Explained | Chapter 17 of Principles of Microeconomics What happens when a few powerful firms dominate an industry? Chapter 17 of Principles of Microeconomics explores oligopoly , a market structure defined by strategic interaction between a handful of competitors. This chapter summary unpacks the tension between cooperation and competition, explains how game theory models firm behavior, and examines the role of antitrust laws in regulating collusion and promoting fair markets. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! Oligopoly: Strategic Markets and Interdependence An oligopoly exists when a few large firms control most of the market. Unlike perfectly competitive markets, firms in oligopoly are highly interdependent—their pricing and output decisions directly affect competitors. ...