Forms of competition

This tutorial looks at markets that are deemed to have "perfect competition." This means that there are many players with identical products, no barriers to entry, no advantage for existing players and good pricing information. Few to no real market completely matches this theoretical ideal, but many are close. Even the example we use in this tutorial (the airline industry) isn't quite perfect (you should think about why).

No, we aren't talking about the board game although the game does try to approximate what this tutorial is about--notice that you can charge more rent at either Boardwalk or Park Place if you own both (you have a "monopoly" in the navy blue market). The opposite of perfect competition is when you have only one firm operating. This tutorial explores what this firm would do to maximize economic profit.

Most markets sit somewhere in-between perfect competition and monopolies. This tutorial explores some of those scenarios--from monopolistic competition to oligopolies and duopolies.