Term
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Definition
| a combination of firms that acts as if it were a single firm. |
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Term
| Cartel model of oligopoly |
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Definition
| a model that assumes that oligopolies act as if they were monopolists that have assigned output quotas to individual member firms of the oligopoly so that total output is consistent with joint profit maximization. |
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Term
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Definition
| the value of sales by the top firms of an industry stated as a percentage of total industry sales. |
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Term
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Definition
| : a model of oligopoly in which barriers to entry and barriers to exit, not the structure of the market, determine a firm’s price and output decisions |
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Term
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Definition
| an index of market concentration calculated by adding the squared value of the individual market shares of all firms in the industry |
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Term
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Definition
| a type of collusion in which multiple firms make the same pricing decisions even though they have not explicitly consulted with one another. |
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Term
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Definition
| the physical characteristics of the market within which firms interact |
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Term
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Definition
| a market structure in which many firms sell differentiated products |
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Term
| North American Industry Classification System (NAICS) |
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Definition
| an industry classification that categorizes industries by type of economic activity and groups firms with like production processes. |
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Term
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Definition
| a market structure in which there are only a few firms and firms explicitly take other firms’ likely response into account |
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Term
| Strategic decision making |
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Definition
| taking explicit account of a rival’s expected response to a decision you are making |
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Term
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Definition
| an action in which another firm or a group of individuals issues a tender offer (that is, offers to buy up the stock of a company) to gain control and to install its own managers |
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Term
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Definition
| a market’s ability to promote cost reducing or product-enhancing technological change. |
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Term
| Incentive-compatible contract |
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Definition
| a contract in which the incentives of each of the two parties to the contract are made to correspond as loosely as possible |
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Term
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Definition
| a monopolist that does not push for efficiency, but merely enjoys the position it is already in |
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Term
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Definition
| the need to oversee employees to ensure that their actions are in the best interest of the firm |
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Term
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Definition
| the phenomenon that the greater use of a product increases the benefit of tat product to everyone |
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Term
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Definition
| the process of a firm buying other firms’ products, disassembling them, figuring out what’s special about them, and then copying them within the limits of the law |
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Term
| Technological development |
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Definition
| the discovery of new or improved products or methods of production |
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Term
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Definition
| the prior use of a technology makes the adoption of subsequent technologies difficult |
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Term
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Definition
| the underperformance of a firm that has a monopoly position |
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Term
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Definition
| a transaction in which a company buys another company and the purchaser has the right of direct control over the result ion operation |
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Term
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Definition
| the government’s policy toward the competitive process |
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Term
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Definition
| a U.S. law that made four specific monopolistic practices illegal: price discrimination, tie-in contracts, interlocking directorships, and buying stock in a competitor’s company in order to reduce competition |
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Term
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Definition
| the merging of relatively unrelated businesses |
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Term
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Definition
| one company’s sale of either parts of another company it has bought or parts of itself |
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Term
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Definition
| the executive group of the European Union that guides action and safeguards the European Union nations; also called commission of the European Communities |
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Term
| Federal Trade Commission Act |
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Definition
| A U.S. law that made it illegal for firms to use ‘unfair methods of competition’ and to engage in ‘unfair or deceptive acts or practices” |
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Term
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Definition
| the combining of two companies in the same industry |
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Term
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Definition
| a merger in which the firm being taken over doesn’t want to be taken over |
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Term
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Definition
| a formal policy that government takes toward business. |
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Term
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Definition
| to judge the competitiveness of markets by the performance of firms in that market |
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Term
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Definition
| to judge the competitiveness of markets by the structure of the industry |
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Term
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Definition
| the act of combining two firms. |
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Term
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Definition
| an industry in which a single firm can produce at a lower cost that can two or more firms. Also: an industry in which significant economies of scale make the existence of more than one firm inefficient |
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Term
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Definition
| A U.S. law designed to regulate the competitive process. |
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Term
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Definition
| investments funds held by governments. |
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Term
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Definition
| the purchase of one firm by a shell firm that then takes direct control of all the purchased firm’s operations |
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Term
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Definition
| a combination of two companies that are involved in different phases of producing a product. |
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Term
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Definition
| a market with only a single seller and a single buyer |
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Term
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Definition
| a firm where unions control the hiring |
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Term
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Definition
| laws mandating comparable pay for comparable work |
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Term
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Definition
| the demand for factors of production by firms, which depends on consumers’ demands |
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Term
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Definition
| wages paid above the going-market wage to keep workers happy and productive |
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Term
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Definition
| the ability to organize and get something done. Also: labor services that involve high degrees of organizational skills, concern, oversight responsibility, and creativity. |
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Term
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Definition
| how much a person will change his or her hours worked in response to a change in the wage rate |
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Term
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Definition
| : the factor market in which individuals supply labor services for wages to other individuals and to firs that need (demand) labor services |
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Term
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Definition
| the additional cost to a firm of hiring another worker |
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Term
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Definition
| a market in which a single firm is the only buyer |
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Term
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Definition
| a firm in which all workers must join the union. |
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