Topic 7: Advertising

In this topic we examine different views on the mechanisms by which advertising works, examining the welfare consequences of advertising in each case.



Topic 6: Product differentiation

In this topic we analyse horizontal product differentiation models, which are models in which consumers value variety in consumption, or in which different consumers prefer different goods.

Lecture 1:

Lecture 2:

Class 8 is under the previous lecture, since we did not discuss product differentiation in it.


Topic 5: Price discrimination and nonlinear pricing

In this topic, we look at the different varieties of price discrimination which monopolists may perform.


Class 1:

Class 2:

Topic 4: Will profits in reality be higher or lower than under Cournot?

In this topic we try to answer the question: “Will profits in reality be higher or lower than under Cournot?”. We begin by reminding ourselves of the origins of Cournot competition, and then go on to analyse collusion in dynamic oligopoly, and repeated games.

Note that since we did not cover any of these slides in week 4, the class and lecture from week 4 are placed under topic 3.



Mock mid-term short answer test

Below is the mock mid-term short answer test.