This is a complete lesson plan about the unique characteristics of oligopolies. Students get to see the strategic decisions faced by oligopolists by participating in two exciting simulations. Other parts of the lesson focus on collusion, problems with tacit collusion, and the kinked demand curve. (This lesson is part of a larger unit on Market Structure
THIS DOWNLOAD INCLUDES:
1) Warm Up Activity -- simulation that mirrors the famous prisoners’ dilemma.
2) PowerPoint Presentation -- contains the lecture and is a guide for all activities.
3) Note Sheet -- students fill out this note sheet during the lecture.
4) Class Activity -- simulation where students make pricing decisions as an oligopolist.
5) Homework -- students group oligopolistic firms and calculate oligopoly profits.
6) Teacher Materials -- includes a detailed lesson plan, answer keys, and a "Read Me" document explaining how to use the materials included.
TOPICS FOR THE LECTURE:
1) Characteristics of oligopoly
2) Game theory, strategy, and pricing behavior
3) Factors that lead to collusion (cartels) or competition
4) Tacit collusion and its difficulties
5) The kinked demand curve
6) Price leadership, price wars, and product differentiation
(If you would like to download one of my PowerPoint slideshows to get a feel for my style, check out my free download here
This lesson is the sixth day of a seven-day unit on Market Structure
that was designed using national standards from the Council for Economic Education. It should take 80 - 90 minutes, which is perfect for the block schedule, but it can also be easily split in half for classes that run closer to 50 minutes.
Oligopoly - Lesson Plan and Activities
by Nick Samsal
is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License