227 Glossary: Oligopolies (186/160) -- Microeconomics

227 Glossary: Oligopolies - cartel - a group of firms that collude to produce the monopoly output and sell at the monopoly price - collusion - when firms act together to reduce output and keep prices high - duopoly - an oligopoly with only two firms - game theory - a branch of mathematics often used by economists that analyzes situations in which players must make decisions and then receive payoffs based on what decisions the other players make - imperfectly competitive - firms and organizations that fall between the extremes of monopoly and perfect competition - kinked demand curve - a perceived demand curve that arises when competing oligopoly firms commit to match price cuts, but not price increases - oligopoly - when a few large firms have all or most of the sales in an industry - prisoner’s dilemma - a game in which the gains from cooperation are larger than the rewards from pursuing self-interest