Question

Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you’ve seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer. please type.

Answer 1

Lets take an example of mobile network or cellular services. US has few very large mobile network provider who controlls most of the market, these firms are inerdependent on the basis of the price in the market, if a firm in the market provides any service at a lower price, the other in the market are going to follow those firms downward for the price change, but if any service increase the price of the goods then none of the firm will be following in price rise,

The goods that these firms provide provide is almost the same except some value added services that are different, there are four or five large firms who dominate the whole market and price of the services are almost the same for most of the goods.