Understanding Oligopoly Markets: Competition, Interdependence, and Collusion

The video explores the concept of oligopoly, a market structure with few large firms. It highlights the interdependency among firms, leading to non-price competition. The kinked demand curve is explained, showing why price wars are ineffective. The video also covers collusion, its types, and its impact on industry profits and regulation. It concludes with the merits and demerits of collusion, including efficiency and potential harm from price cartels.

What new insight or understanding did you gain from this video?