After reading this chapter, students should be able to:

• Discuss the relationship between oligopoly and game theory.
• Describe the Bertrand model and the Cournot model, and identify the Nash equilibrium in each model.
• Explain why product differentiation makes price competition less intense and identify the Nash equilibrium in a market with product differentiation.
• Analyze whether collusion is sustainable in a setting of repeated price competition.
• Determine the number of firms that will enter a market, discuss the factors that affect this number, and explain its relation to the socially optimal number.
• Describe the main U.S. antitrust statutes and discuss their rationale.