Chapter 9 - Oligopoly. Chapters 7 and 8 present overviews of perfect competition and pure monopoly. Chapter 9 examines the case of oligopoly and provides a rich treatment of competitive strategy. | Chapter Nine Oligopoly It is in rare moments that I see my business clearly: my customers, my organization, my markets, and my costs. Then why do I still lie awake at night? I’m trying to figure out the damn strategies of my competitors! ~A Manager’s Lament For Discussion Collusion in the Infant-Formula Industry In the 1990s, the prices charged by the three largest infant-formula suppliers were nearly identical and increased in lockstep. Oligopoly Five-Forces Framework Industry Concentration Concentration and Prices Business Behavior—Global Airfares Figure The Five-Forces Framework Quantity Competition A Dominant Firm Competition among Symmetric Firms Dueling Suppliers Figure Optimal Output for a Dominant Firm Price Competition Price Rigidity and Kinked Demand Price Wars and the Prisoner’s Dilemma A Price War The Prisoner’s Dilemma Bertrand Price Competition When to Cut Price 8 Figure Optimal Output with Kinked Demand Other dimensions of competition Strategic . | Chapter Nine Oligopoly It is in rare moments that I see my business clearly: my customers, my organization, my markets, and my costs. Then why do I still lie awake at night? I’m trying to figure out the damn strategies of my competitors! ~A Manager’s Lament For Discussion Collusion in the Infant-Formula Industry In the 1990s, the prices charged by the three largest infant-formula suppliers were nearly identical and increased in lockstep. Oligopoly Five-Forces Framework Industry Concentration Concentration and Prices Business Behavior—Global Airfares Figure The Five-Forces Framework Quantity Competition A Dominant Firm Competition among Symmetric Firms Dueling Suppliers Figure Optimal Output for a Dominant Firm Price Competition Price Rigidity and Kinked Demand Price Wars and the Prisoner’s Dilemma A Price War The Prisoner’s Dilemma Bertrand Price Competition When to Cut Price 8 Figure Optimal Output with Kinked Demand Other dimensions of competition Strategic Commitments Commitments Advertising Optimal Advertising Advertising within Oligopoly Collusion in the Infant Formula Industry Revisited Appendix to Chapter 9 BUNDLING AND TYING Bundling Films Mixed Bundling . | Chapter Nine Oligopoly It is in rare moments that I see my business clearly: my customers, my organization, my markets, and my costs. Then why do I still lie awake at night? I’m trying to figure out the damn strategies of my competitors! ~A Manager’s Lament For Discussion Collusion in the Infant-Formula Industry In the 1990s, the prices charged by the three largest infant-formula suppliers were nearly identical and increased in lockstep. Oligopoly Five-Forces Framework Industry Concentration Concentration and Prices Business Behavior—Global Airfares Figure The Five-Forces Framework Quantity Competition A Dominant Firm Competition among Symmetric Firms Dueling Suppliers Figure Optimal Output for a Dominant Firm Price Competition Price Rigidity and Kinked Demand Price Wars and the Prisoner’s Dilemma A Price War The Prisoner’s Dilemma Bertrand Price Competition When to Cut Price 8 Figure Optimal Output with Kinked Demand Other dimensions of competition Strategic Commitments Commitments Advertising Optimal Advertising Advertising within Oligopoly Collusion in the Infant Formula Industry Revisited Appendix to Chapter 9 BUNDLING AND TYING Bundling Films Mixed Bundling Tying
