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.

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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.

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Topic 5: Price discrimination and nonlinear pricing

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

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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.

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Topic 3: Further static oligopoly

In this topic we go further into the consequences of Bertrand and Cournot competition, and we investigate the links between the two.

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Note that in this class I made a bit of a mess of the final problem we went through. A worked answer to that problem is available below: