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An Extended Duopoly Game

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  • John C. Eckalbar

Abstract

The author shows how principles and intermediate economic students can gain a feel for strategic price setting by playing a relatively large oligopoly game. The author constructs a playoff matrix and discusses various strategies and outcomes. The game extends to a continuous price space and outlines various applications appropriate for intermediate micro students. Finally, to make it easier for others to tinker with the assumptions of the game, the author can provide the Mathematica code used to generate the table and figures.

Suggested Citation

  • John C. Eckalbar, 2002. "An Extended Duopoly Game," The Journal of Economic Education, Taylor & Francis Journals, vol. 33(1), pages 41-52, January.
    • Handle: RePEc:taf:jeduce:v:33:y:2002:i:1:p:41-52
    DOI: 10.1080/00220480209596123
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    Cited by:

    1. Kirstein, Roland & Schmidtchen, Dieter, 2003. "Self-interest, Social Wealth, and Competition as a Discovery Procedure : A classroom experiment that makes the "invisible hand" visible," CSLE Discussion Paper Series 2003-08, Saarland University, CSLE - Center for the Study of Law and Economics.
    2. Roland Kirstein & Dieter Schmidtchen, "undated". "Self-interest, Social Wealth, and Competition as a Discovery Procedure," German Working Papers in Law and Economics 2004-1-1083, Berkeley Electronic Press.

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