ECO 2023 Lecture Notes - Lecture 22: Price Discrimination, Clayton Antitrust Act, Sherman Antitrust Act
16 Apr 2018
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Oligopoly: market with a few rms, large but not insurmountable barriers to entry, we study a duopoly. Game theory: john von neumann, john nash, elements of a game. A group of producers who agree to jointly determine their production and prices. : each player uses his or her best strategy taking as given the competitor"s strategy. Tit for tat strategy: i"ll do this time what you did last time. Section 1 outlaws every contract, combination in the form of a trust or otherwise, or conspiracy in restraint of trade or commerce. Section 2 makes every person who shall monopolize or attempt to monopolize guilty of a felony. : clayton act (1914) Speci c business acts are prohibited if they substantially lessen competition or tend to create monopoly. : price discrimination, exclusive dealings, interlocking directorates, tying contracts, acquisition of a competitor"s shares or assets.
