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Why do you think game theory has become the preferred method of analyzing oligopolistic markets?
Game theory has become the preferred method for analyzing oligopolistic markets because it effectively captures the strategic interactions among a few powerful firms whose decisions directly affect one another. In oligopolies, firms must consider their competitors' potential reactions to their own actions, such as pricing, output, and product differentiation. Game theory provides a structured framework to model these interdependencies, allowing for a better understanding of competitive behavior, market outcomes, and potential collusion. Additionally, it helps predict outcomes in scenarios where firms have to make decisions simultaneously or sequentially, illuminating the complexities inherent in oligopolistic competition.
What type of market form are airlines?
oligopolistic competition
Is airline industry a oligopoly or monopolistic?
Oligopolistic
In competing with rivals oligopolistic firms will tend to use?
no
Example of Producer Cooperative in the Philippines?
criticisms on oligopolistic competition
The media industry is characterized by an oligopolistic market structure because?
centralization of ownership
Do prices in oligopolistic industries fluctuate widely and frequently compared to other market structures?
No
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures?
yes
What kind of market structure is the cinema industry?
probably oligopolistic; several large firms, a few small.
Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
What best explains why the media industry is caracterized by an oligopolistic market structure?
Centralization of ownership has led to an industry controlled by a few large companies
Which is the cause of the media industry's oligopolistic market structure?
The media industry's oligopolistic market structure is caused by high barriers to entry, such as the high cost of infrastructure and content creation. Additionally, economies of scale play a role as larger companies can spread their costs over a larger audience. Finally, consolidation and mergers contribute to the concentration of power among a few key players in the industry.
