Price-Searcher Markets

This chapter and the next two examine price-searching firms. Such firms inhabit one of the three types of industries: simple monopoly (one firm constitutes the industry), monopolistic competition (many firms inhabit an industry for which each firm’s product differs slightly from those of other firms), and oligopoly (a few firms inhabit an industry, and the firms’ products may be either identical or similar). This chapter addresses the first two cases.