Re: duopoly doubt

Posted by aditi5000 on Jun 21, 2012; 5:35am
URL: http://discussion-forum.276.s1.nabble.com/duopoly-doubt-tp7578431p7578437.html

Yes exactly, from the firms point of view the pareto efficient situation is collusive oligopoly where output is highly restricted and prices are high. but this is not a stable equilibrium... even better than that is a monopoly situation - no competition!