Zusammenfassung der Ressource
Firm strategy
- Pricing
- Elasticities
- PED
- YED
- XED
- PES
- Px taker
- Accepting the Px
mkt determines
- e.g PC Firms
- Price rigidity
- ↓ Px, rivals will follow suits,
but when ↑ Px, rivals will
not follow suit
- Kink DD theory
- e.g Oligopoly
- Px setter
- Limit pricing
- below the short run
profit-maximising price
- To drive out
competition
- e.g monopoly
- Predatory pricing
- keep price below AC
- Profit
maximisation
MC = MR
- Non-Price
- R & D
- i.e Real
differences
- improve the quality and the
features of the good
- ↑ price
inelastic
dd
- ↑ prices
- A&P/Branding
- i.e Imaginary
differences
- ↑ awareness
and the appeal
- ↑ DD of the good
- Others
- Output
strategy
- ↑ output
- ↓ output
- Produce at
MC = MR
- Alt Objs
- LT profit maximisation
- Growth maximisation
- Corporate image
- Collusion
- Formal
- Explicit price-fixing
- Cartels
- Act like 1 big monopoly
- Tacit/Informal
- Price leadership
- Dominant firm establishes
price/price changes
- M&A
- Cost adv
- IEOS
- Remove
duplication
- ↓ Adv cost
- Revenue adv
- ↑ DD
- ↑ Px
Inelastic
DD
- R&D