Term
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Definition
| Where a few large firms have the majority of the market share. |
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Definition
| The proportion of the market share held by the dominant firms. |
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Definition
| Setting a price that may bankrupt a competitor firm in order to try and take it over. |
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Term
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Definition
| Combining with other firms. |
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Term
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Definition
| Where actions by one firm will have an effect on the sales and revenue of other large firms in the market. |
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Term
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Definition
| Where firms competitively lower prices to increase their market share. |
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Term
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Definition
| The action taken by firms in response to a change in behaviour of a competitor. |
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Term
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Definition
| A theoretical approach that endeavours to analyse the reasons for price stability in oligopoly. |
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Term
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Definition
| A measure indicating the degree to which consumers will purchase a firm's product rather than a competing firm's product. |
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Term
| Discontinuous marginal revenue curve |
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Definition
| Region over which a change in marginal costs will not lead to a change in the firm's price and output levels. |
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Term
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Definition
| An analysis of how games players react to changing circumstances and plan their response. |
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Term
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Definition
| Where a gain by one player is matched by a loss by another player. |
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Term
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Definition
| Where one party does not take any action that might provoke retaliatory activity by another party. |
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Term
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Definition
| Where firms cooperate in their pricing and output policies. |
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Term
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Definition
| Where prisoners both choose the wrong option. |
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Term
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Definition
| Where the optimum strategy is to maintain current behaviour. |
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Term
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Definition
| Where firms collude to indulge in anti-competitive policy. |
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Term
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Definition
| Where firms agree to maximise shared rather than their individual profits. |
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Term
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Definition
| A group of firms working together, or colluding. |
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Term
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Definition
| A firm that establishes the market price that all other firms in the agreement follow. |
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Term
| Barometric price leadership |
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Definition
| A firm whose price changes are accepted as they are adroit at interpreting market conditions. |
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Term
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Definition
| Where firms charge identical prices. |
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Term
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Definition
| Where firms have reached an agreement as to each other's behaviour as a result of repeated observations over time. |
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Term
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Definition
| The time and money spent by businesses in changing their prices in line with inflation. |
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