One oligopolist can move markets in the short run but usually pays a heavy financial price in the longer run. |
|
What other ways can an oligopolist legally and ethically be aware of its competitors? |
|
If an oligopolist decreases his price even slightly, competitors are likely to do the same in order to avoid losing business. |
|
Nike can then act as an oligopolist in its own market, and can pocket the profit differential that lower-cost suppliers can offer. |
|
On the other hand, an intermediate-good producer is a price setter and acts as an oligopolist. |
|
Moreover, the powerful outsider can play one oligopolist against another in achieving attractive terms. |
|
For instance, Bresnahan suggests a simultaneous system of demand and price for a monopolist or oligopolist that can be estimated empirically. |
|
It is also assumed that all firms are idential and that each of the n firms make their production decisions as would a standard Cournot oligopolist. |
|