Question
Eric Maskin and Jean Tirole co-authored a series of three papers outlining a theory of the dynamic form of this market structure. For 10 points each:
[10e] Name this market structure. In the Bertrand model of this market structure, the existence of only two firms is sufficient to drive price to marginal cost.
ANSWER: oligopoly [accept duopoly]
[10h] Maskin and Tirole apply their theory to price cycles named for this economist, where firms engage in price war and relenting phases. This economist’s limit theorem can be visualized using a namesake box if there are two markets and two consumers.
ANSWER: Francis Ysidro Edgeworth
[10m] When this quantity is sufficiently large in the theory of dynamic oligopoly, a unique symmetric Markov perfect equilibrium arises and only one firm remains. Cournot competition does not consider this quantity, which is a potential barrier to entry.
ANSWER: fixed cost
<KJ, Social Science>
Summary
| 2023 ARCADIA at UC Berkeley | Premiere | Y | 2 | 20.00 | 100% | 0% | 100% |
| 2023 ARCADIA at Carleton University | Premiere | Y | 3 | 13.33 | 100% | 0% | 33% |
| 2023 ARCADIA at Claremont Colleges | Premiere | Y | 1 | 10.00 | 100% | 0% | 0% |
| 2023 ARCADIA at Indiana | Premiere | Y | 5 | 10.00 | 40% | 0% | 60% |
| 2023 ARCADIA at RIT | Premiere | Y | 2 | 10.00 | 50% | 0% | 50% |
| 2023 ARCADIA at WUSTL | Premiere | Y | 3 | 13.33 | 67% | 0% | 67% |
Data
| Berkeley A | Berkeley B | 10 | 10 | 0 | 20 |
| Stanford A | Berkeley C | 10 | 10 | 0 | 20 |