3.2 — Stackelberg Competition — Class Content

Meeting Date

Tuesday, March 7, 2023


Today we extend our understanding of game theory to talk about how collusion can be sustainable.


Recommended/Referenced Readings

Chapter 7 is a good overview of static game theory - read it if you have not yet, or want some more of the basics. We will focus simply on Nash equilibrium and the possibility of multiple Nash equilibria.

Chapter 9 is a good overview of sequential games and repeated games, which we will introduce today.

Chapter 10 discusses oligopoly in light of how collusion can be sustained in dynamic settings.


Today you will be working on practice problems:


Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. The lower button will allow you to download a PDF version of the slides.


You can type h to see a special list of viewing options, and type o for an outline view of all the slides.

I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!


Download as PDF