Econ on the Go

How can firms overcome the challenges of aligning incentives within the organization?

These two models of asymmetric information occur before the economic relationship (adverse selection) or after the contract is signed (moral hazard).

The quantity-choice oligopoly games are Cournot (simultaneous) and Stackelberg (sequential).

What are oligopolies, how are they regulated, and what is the Bertrand pricing model?

Sequential games and how to solve them are explained.

This covers the principles of game theory, and explores the simultaneous move games (like Prisoner's Dilemma).

Two pricing strategies firms can use to increase revenue are two-part tariffs (a fixed fee plus a per-unit charge) and bundling (selling two different products/services together in a package).

How do monopolists set their optimal price, and how can firms increase their profits by charging different prices to different customers for the same product or service?