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Price leadership
another type of oligopolistic behaviour
when one firm has a clear dominant position in the market and firms with lower
market shares follow the pricing changes prompted by the dominant firm
Tacit collusion
occurs when firms undertake actions that are likely to minimize competitive response
(avoiding price cutting or not attacking each others market)
Explicit collusion
price fixing agreements or cartels
aim of this is to maximize joint profits and act as if the market was a pure monopoly
Price fixing
an attempt by suppliers to control supply and fix price at a level close to the level
we would expect from a monopoly
producers exert control over market supply