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This chapter discusses companies that are oligopolists in the markets for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the markets for the inputs they buy.
*If sellers who are oligopolists try to increase the price of goods they sell, what is the goal of buyers who are oligopolists?
*Major league baseball team owners have an oligopoly in the market for baseball players.
*What is the owners’ goal regarding players’ salaries?
*Why is this goal difficult to achieve?
Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose.
*If the owners were already colluding over salaries, why did they feel the need for a salary cap?
