When the different firms in an industry make products that are noticeably different. (some market power)
The 4 categories that Economists use to classify industries
Monopolistic Competition (imperfect competition)
Oligopoly (imperfect competition)
Any of several practices by which firms try to compete with each other, which do not rely on choosing lower prices. Advertising, contests, giveaways and special services. (buyers' perception of product differences)
When firms cooperate with each other and have the ability to charge higher prices but is illegal in U.S.
The study of how people and organizations interact with each other in strategic situations. A game-theoretic analysis involves identifying the "players" in the game and the rules. Then, the analysis will specify the payoffs that accompany various outcomes. On the basis of the rules and the payoffs, each player will develop a set of strategies that determine how they will play.
The amount lost by some players is exactly equal to the amount won by other players in a game.