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Copyright © 2006 Thomson Learning
16
Oligopoly 
Copyright © 2006 Thomson Learning
Figure 1 The Four Types of Market Structure
Copyright © 2004 South-Western
Copyright © 2006 Thomson Learning
Table 1 The Demand Schedule for Water
Copyright © 2004 South-Western
Copyright © 2006 Thomson Learning
Table 1 The Demand Schedule for Water
Copyright © 2004 South-Western
Copyright © 2006 Thomson Learning
Figure 2 The Prisoners’ Dilemma
Copyright©2003 Southwestern/Thomson Learning
Mr Black’ s Decision
Confess
Confess
Mr Black gets 20 years
Mr Pink goes free
gets 1 year
Mr Black 
Mr Pink gets 1 year
Remain Silent
Remain
Silent
Mr Pink’s
Decision
Copyright © 2006 Thomson Learning
Figure 3 An Oligopoly Game
Copyright©2003 Southwestern/Thomson Learning
Saudi Arabia’s Decision
High 
Production
High Production
Saudi Arabia gets €40 billion
Iran gets €40 billion
Iran gets €60 billion
Iran gets €30 billion
Iran gets €50 billion
Low Production
Low
Production
Iran
’
s
Decision
Saudi Arabia gets €50 billion
Saudi Arabia gets €30 billion
Saudi Arabia gets €60 billion
Copyright © 2006 Thomson Learning
Figure 4 An Arms Race Game
Copyright©2003 Southwestern/Thomson Learning
Decision of the United States (U.S.)
Arm
Arm
Disarm
Disarm
Decision 
of the 
Soviet Union 
(USSR)
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Figure 5 An Advertising Game
Copyright©2003 Southwestern/Thomson Learning
Marlboro’ s Decision 
Advertise
Advertise
Don
’
t Advertise
Don
’
t
Advertise
Camel’s
Decision
Copyright © 2006 Thomson Learning
Figure 6 A Common Resources Game
Copyright©2003 Southwestern/Thomson Learning
Shell
’
s Decision 
Drill Two
Wells
Drill Two Wells
Drill One Well
Drill One
Well
BP’s
Decision
Copyright © 2006 Thomson Learning
Figure 7 Jack and Jill Oligopoly Game
Copyright©2003 Southwestern/Thomson Learning
Jack’s Decision 
Sell 40
litres
Sell 40 litres
Sell 30 litres
Sell 30
litres
Jill’s
Decision