Chapter
25
Oligopoly
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
25­1
Chapter
Objectives
Concentration
Ratios
The
Herfindahl­Hirschman
index
The
competitive
spectrum
The
kinked
demand
curve
Administered
prices
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
25­2
Oligopoly
Defined
An
oligopoly
is
an
industry
with
just
a
few
sellers
How
few?
So
few
that
at
least
one
firm
is
large
enough
to
influence
price
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
25­3