Option 1: Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that youve seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer. OR Option 2: What is game theory? How does game theory help us understand oligopoly? Watch the following video clips about game theory. Did the videos help you understand this concept? Share your thoughts. The first clip is from “A Beautiful Mind”: http://dirkmateer.com/media/Film+Clips/a-beautiful-mind (Links to an external site.) Links to an external site. The second clip is from “The Dark Knight”: http://dirkmateer.com/media/Film+Clips/the-dark-knight-1 (Links to an external site.) Links to an external site. OR or Option 3: Consider the market for beer. Have you ever wondered why there are so many commercials for different brands of beer? Explain this phenomena using economics and market structures. If you do not have experience in the beer market, you can analyze the market for automobiles or the market for soda. Be sure to state the market structure for the market you selected and clearly explain why the firm advertises.
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