- What do you think about anti-trust laws with respect to the cell-phone industry? Do you think the cell phone industry could be an oligopoly? Why or why not?
I think cell phone carriers are an example of an oligopoly because there are just a few of them and they are offering very similar products. There are many more cell phone manufacturers so I think they are leaning more towards a competitive monopoly, and since they offer slightly different products. I think anti-trust laws in respect to cell phone service carriers are a good think for consumer since we have reached the point as a society where cell phones are nearly a necessity. If they were to collude and become a cartel, their pricing would no longer be competitive and consumer surplus would decrease considerably.
2. Take a few moments to explain how a decision bax works. What about Oligopolies is most unclear to you?
I'm assuming you want an explanation of a how a decision box works. The decision boxes in our text show the four possible outcomes that result from the two different decision each actor can make. Each outcome depends on what decision each actor makes. I imagine that decision boxes can be much larger depending on how many possible decisions can be made and how many actors are involved.
I think I have a pretty clear understanding of oligopolies, other than the blurred line, mentioned in the text, that can exist between them and competitive markets when the number of sellers increases. I did find the prisoner's dilemma a very interesting theory that can apply to many aspects of life. I was especially pleased to find out that the "tit for tat" method was the most successful strategy for dealing with the prisoner's dilemma. I've always been a fan and wondered why "tit for tat" got such a bad rap.
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