Learning objectives
Describe the characteristics of oligopoly, including a few interdependent firms and significant barriers to entry
Explain how a cartel or collusion can move firms toward the monopoly outcome, and why each member has an incentive to cheat
Read a payoff matrix, identify each player's dominant strategy (if any) and find the Nash equilibrium
Apply the prisoner's dilemma to show why non-cooperative behavior can leave both firms worse off than cooperation
Compare the price and output outcomes of oligopoly with those of perfect competition and monopoly
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