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12 Cards in this Set
- Front
- Back
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Oligopoly |
A market dominated by a few large companies |
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Interdependence |
When the actions of any firm in an industry impacts every other firm |
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Price rigidity |
In oligopolies firms avoid price competition so largely stay the same |
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Predatory pricing |
Selling the good at below costs to prevent new firms from entering the industry |
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Limit pricing |
Pricing just above/ at cost level, sales max |
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Collusion |
When firms agree to limit output in order to raise prices in an industry- acting as a monopoly |
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Overt collusion |
Public cartel eg OPEC |
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Tacit collusion |
Collusion without any explicit communication between firms |
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Price leadership |
Setting a high price and other firms following suit- tacit collusion |
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Game theory |
A way of modelling the behaviour of firms that are interdependent |
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Dominant strategy |
Best outcome in game theory irrespective of what the other firm does |
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Concentration ratios |
% of total market share between the top x number of firms |
