Question
Eric Maskin and Jean Tirole coauthored 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, in which 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 Duke | Emory, Duke, Yale | Y | 4 | 10.00 | 75% | 25% | 0% |
| 2023 ARCADIA at Emory | Emory, Duke, Yale | Y | 4 | 12.50 | 100% | 0% | 25% |
| 2023 ARCADIA at Imperial | Imperial | Y | 5 | 12.00 | 60% | 20% | 40% |
| 2023 ARCADIA at Maryland | Maryland, Online | Y | 3 | 3.33 | 0% | 33% | 0% |
| 2023 ARCADIA at Ohio State | Ohio State, Texas | Y | 3 | 13.33 | 67% | 33% | 33% |
| 2023 ARCADIA Online | Maryland, Online | Y | 3 | 23.33 | 100% | 67% | 67% |
| 2023 ARCADIA at Texas | Ohio State, Texas | Y | 3 | 6.67 | 33% | 0% | 33% |
Data
| Birmingham | Cambridge B | 10 | 0 | 0 | 10 |
| Cambridge A | Edinburgh | 0 | 10 | 0 | 10 |
| Oxford | Durham | 0 | 10 | 0 | 10 |
| Imperial A | Bristol | 10 | 0 | 10 | 20 |
| Imperial B | Warwick | 10 | 0 | 0 | 10 |